Chancellor of the Exchequer George Osborne made some important announcements for people looking to get a foot on the property in his recent Autumn Spending Review. The housing budget is set to double by 2018-19, which will help to fund 400,000 new homes by 2020-21. 200,000 of these homes are to be designated as “starter homes” available to first-time buyers at a discount of 20% on the market rate.
He also extended the Help to Buy Equity Loan Scheme which will now continue to 2021. Through it, first-time buyers can receive a 20% loan from the government towards the purchase of a new-build property worth up to £600,000 – the loan is interest-free for the first five years. Recognising, the spiraling price of property in the capital by offering Help to Buy equity loans of 40% of the property value within the Greater London area.
The new Help to Buy ISA is now also available for first-time buyers as of 1 December. Savers can put away up £200 per month towards a deposit (up to a total of £3,000) which will be topped up by the government by 20%. A handy bonus if you are saving for that first-time buy.
Of course, whether you’re a first-time buyer or are already several rungs up the ladder, getting the right mortgage can be a difficult choice in any circumstances. We’ve built our business on providing independent mortgage advice based on our expertise and broad market knowledge. Please do not hesitate to contact us:
0800 970 1795