Budget Announcement Launches Housing Market Mortgage Boost

Conveyancing Specialists Say Help-to-Buy Schemes Will Help Whole Housing Chain

20.03.2013

By Dave Grimshaw

Experts have welcomed the Chancellor’s £5.4 billion package of financial support for the housing market announced in the Budget today saying it could have an impact on the whole market increasing the number of people moving up the property ‘ladder’.

The Budget announcement today included the launch of Help to Buy - made up of two schemes to help those who want to get on, or move up, the housing ladder.

There is an “equity loan” where the Government will loan up to 20% of the value of a new build home and a “mortgage guarantee” where lenders will be incentivised to make more mortgages available for people with small deposits whereby the Government will indemnify the lenders. 

The “mortgage guarantee” is designed for those without a large deposit but can afford the repayments on a mortgage and is available on all properties up to the value of £600k. It will be available from January 2014.

Eve Lake, a conveyancing expert at Irwin Mitchell, which helps people buy and sell homes across the UK, says the scheme is a welcome boost for the housing market which needs support across the whole chain.

She said: “We welcome these schemes as it is really important to ensure that the whole housing market chain is supported. But it is now crucial that they are marketed far and wide as the criticism of government schemes in the past has been that people are simply unaware that they even exist.

“The fact that these schemes now range up to £600,000 shows that the government is serious about helping people across the board, not just the average first-time buyers.

“The mortgage guarantee in particular will help those people who can afford the payments on a more expensive home and wish to move up the property ladder but do not have large deposits readily available.

“With renting property becoming increasingly costly, these schemes and initiatives could get people buying and help give the market a welcome push in the right direction.”

Read more about Irwin Mitchell's expertise in conveyancing here.