As the property market enters a downturn, Britain’s government announced late Monday that it would continue a programme that encourages lenders to issue 95% loan-to-value mortgages to first-time buyers.
The Mortgage Guarantee Scheme was started in April 2021 and was set to expire at the end of this year, but it will now be extended until the end of 2023. More than 24,000 homes have benefited from the initiative.
The extension comes as lenders report dropping house prices as mortgage interest rates rise and purchasers’ disposable money is squeezed. Inflation reached a 41-year high in October.
‘By extending this plan, thousands more people will have the opportunity to profit, and it will help the market as we navigate through these challenging times,’ deputy finance minister John Glen said.
Halifax predicted this week that house prices would fall 8% next year, and it saw the greatest monthly reduction in house prices since 2008.
Post Your Comments