'HELP TO BUY SCHEME 'ANNOUNCED IN THE BUDGET
The“Help to Buy” scheme, which appears to
be primarily aimed at helping households get a foot on – or climb up –
the housing ladder with the intention of kick-starting the development of
new homes and adding liquidity to the mortgage market was announced in todays budget.
Help to Buy is
made up of two schemes:
• “Equity loan” scheme, which will run from 1 April 2013, where the
government will lend individuals a deposit of up to 20% on a new
build home if the individual contributes a 5% deposit.
• “Mortgage guarantee” scheme, which will run from January 2014,
where the government will allow banks to purchase a guarantee
from it on high loan-to-value mortgages for either new build or
existing properties worth less than £600,000.