95% mortgages 'will help thousands of buyers'
12th Mar 2012
Thousand of first-time buyers around the UK are set to benefit from 95 per cent mortgages under a new loan guarantee scheme.
The NewBuy Guarantee is vein backed by both the government and developers and is aimed at 100,000 prospective and existing homeowners who cannot currently afford the deposits required for 80 per cent mortgages.
People will be able to purchase a newly built £200,000 home with a deposit as low as £10,000, rather than the £40,000 that many lenders are currently requiring – something that was welcomed by UK prime minister David Cameron.
"Strong families and stable communities are built from good homes. That's why I want us to build more homes and I want more people to have the chance to own their own home. Affordable properties and available mortgages are vital," he added.
Mr Cameron also revealed that the coalition is to increase the maximum discount for council tenants to buy their houses to £75,000.
Speaking to Sky News, housing minister Grant Shapps said the government will not return to the "ridiculous" days of 120 per cent mortgages, and will instead aim to ensure that a generation of first-time buyers can gain a foothold on the housing ladder.
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