Hudson Moody
20 March 2013

'HELP TO BUY SCHEME 'ANNOUNCED IN THE BUDGET

'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 SCHEME 'ANNOUNCED IN THE 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.

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