There’s good news for First Time Buyers (FTBs) to end the year. The Mortgage Guarantee Scheme, which supports FTBs buying a home with a 5% deposit, has been extended to the end of December 2023.
Since it was launched in April 2021 it has helped more than 24,000 households get onto the property ladder, 85% of whom were FTBs.
Under the scheme the government offers the financial guarantees they need to provide mortgages that cover the other 95%, subject to the usual affordability checks, on a house worth up to £600,000.
To also support people to get onto the property ladder, the government has increased the level where FTBs start paying stamp duty from £300,000 to £425,000. They can get relief on properties costing up to £625,000, as opposed to £500,000 previously. Both measures are time-limited to April 2025.
Sheldon Bosley Knight’s head of residential sales and marketing, James Morton, said: “This is welcome news for first time buyers and others looking to get a foot on the ladder and who have been struggling to put down more than a 5% deposit.
“It will be especially welcome thanks to recent interest rate rises which have led to increased mortgage rates.
“As ever, if you are looking to buy your first home and need more information or help and advice about the best deals, our teams at Sheldon Bosley Knight can help. Either pop in to one of our branches or call us to see how we can get you moving.”