The Chancellor has issued details to lenders of the government’s Help to Buy mortgage guarantee scheme, to enable them to start boosting high loan-to-value (LTV) lending by next January.
At a meeting at Number 11 the Chancellor discussed with lenders and builders details of how the scheme will work, as well as broader efforts to get more first time buyers on the property ladder.
The Chancellor of the Exchequer said:"I’m determined to back people who want to do their best for their families. Help to Buy is about getting behind those who aspire to own a home."
The mortgage guarantee will support an increase in high loan-to-value mortgages for people who can’t afford large deposits, and it will also boost housebuilding. As of today (July 23 2013) lenders have the detail they need to go away and get ready for next January’s launch."
Major UK homebuilders have put their support behind the scheme and its ability to help boost housing supply.
Stewart Baseley, Executive Chairman of the Home Builders Federation said the “outlook for new homes delivery is a positive one”.
The housebuilders confirmed that taken together with the Equity Loan scheme, government action has already helped boost home construction.
