George Osbourne, Chancellor of the Exchequer announces new schemes to help buyers onto the property ladder.

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Important Update: 29/09/2013

The second phase of the Help to Buy scheme is now being launched three months earlier than originally planned. For the most recent Help to Buy information please click here and see our most recent articles.

Original article below:

George Osbourne, Chancellor of the Exchequer announced two measures in his 2013 Budget that he describes as making the “aspiration of home ownership a reality for more people across the country”.

The Help to Buy scheme will “support people who have at least a 5% deposit” to buy a home through two schemes and the aim of this is to increase the supply of low-deposit mortgages and new housebuilding.

Both schemes are designed to help home buyers purchase a home with a maximum value of £600,000.

Option 1 – Equity Loan

EquityLoan

Is it applicable to any property?

No, just new build only

Deposit required?

Yes, minimum of 5%

Do I have to be a first time buyer?

No, this scheme is available to all, not just first time buyers

How does it work?

The Government will lend you up to 20% of the value of your property through an equity loan, which can be repaid at any time or on the sale of your home…so you will only need to secure up to a 75% mortgage from a bank or building society

When does it start?

The scheme is available from 1 April 2013. It will run for 3 years and provide £3.5billion of additional investment

Option 2 – Mortgage Guarantee

MortgageGuarantee

Is it applicable to any property?

New build and existing homes

Will I need a deposit?

Yes, you’ll need a minimum of 5%

Is it only open to First Time Buyers?

No, it is also open to existing homeowners

How does it work?

You’ll need to secure a mortgage for your purchase. The Government guarantee should help encourage lenders to offer better access to low-deposit mortgages

When does it start?

Available from January 2014, this scheme will run for 3 years

Is there a maximum purchase price?

Yes, £600,000

Source: HM Treasury

Some information contained herein may have changed since it was first published. Zoopla strongly advises you to seek current legal and/or financial advice from a qualified professional.

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