Chancellor Rishi Sunak confirmed the launch of a Mortgage Guarantee Scheme in today’s Budget, to help those with lower deposits onto the housing ladder.
The government will offer incentives to lenders in order to bring back 95% LTV mortgages, which were removed from the market as a result of the pandemic, in a bid to turn Generation Rent into Generation Buy.
Chancellor Rishi Sunak outlined in his Budget the UK’s biggest lenders including Lloyds, Natwest, Santander, Barclays and HSBC are prepared to launch the scheme first with Virgin Money set to follow.
Budget 21: The Budget in Tweets
A new policy to stand behind homebuyers: a mortgage guarantee.
Lenders who provide mortgages to home buyers who can only afford a 5% deposit, will benefit from a government guarantee on those mortgages. #Budget2021 pic.twitter.com/kyNbzHOMdM
— Rishi Sunak (@RishiSunak) March 3, 2021
The scheme is based on the Help to Buy mortgage guarantee scheme which ran until December 2016 and helped over 100,000 UK households buy their own home.