Guaranteed Rent Scheme | Mortgage guarantee scheme ‘will boost UK housing market’
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The mortgage guarantee scheme announced last week will help the housing market in the UK.
Summary:
The government announced the mortgage guarantee scheme and Help to Buy initiative Guaranteed Rent Scheme
Lloyds says this will ‘boost’ the market with more high LTV mortgages available
This will help second-steppers as well as FTBs
The government’s recently announced mortgage guarantee scheme will provide a boost to the property market in the UK.
This is the opinion of Lloyds Banking Group’s Manager Director Stephen Noakes, who recently commented on the outcome of the Budget 2013, revealed last week (March 20th).
In the Budget, the government stated it will provide £130 billion to offset banks that offer high loan-to-value (LTV) mortgages to homebuyers from January 2014. This will enable mortgage providers to offer loans that do not require too high a deposit to purchase a property.Guaranteed Rent Scheme
Mr Noakes said the move will “give a much needed boost to the housing market and most importantly address the issue of accessibilityâ€.
“[It will] provide a genuine solution to the challenge of raising a deposit [which will help] … people on and moving up the property ladder,†he stated.
He stated that the initiative will help second steppers as well as first-time buyers (FTBs), which will provide stimulus in the overall market.
Last year, Lloyds Banking Group lent more than £6.1 billion to 55,000 FTBs and it anticipates the new mortgage guarantee scheme will help a further 50,000 people in the UK every year.
The British Property Federation (BPF) also supports the government’s new schemes, including its Help to Buy programme, which will assist those purchasing new build homes.
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