Government Scheme Backs 95% Mortgages

David Cameron and Nick Clegg have announced taxpayer-backed 95% mortgages  as part of a new strategy to help break the deadlock in housing market.  It will make “dream of home ownership” a reality for more people rather than following the European craze of renting.

The Government’s housing strategy, published on Monday, is designed to boost the housing shortage, increase the economy, create jobs and give people the opportunity to get on the housing ladder.

Cameron voiced that,

“You always remember that moment, if you’ve done it, when you get that key and you walk into your first flat, it’s a magic moment. It’s a moment I want everyone in this country to have, not just better-off people. The dream of home ownership is something that should be achievable for everyone.”

This scheme will give a helping hand to 100,000 prospective buyers currently frozen out of the housing market because of the need for large deposits.

The Strategy:

• A consultation on “pay to stay” proposals in light of those on high salaries benefiting from taxpayer-subsidised homes. The consultation will suggest those social tenants on household incomes of more than £100,000 a year should pay up to market rents if they want to continue living in taxpayer-subsidised homes.
• An extra £50m on top of the £100m from this year’s budget towards an initiative to refurbish empty homes, mainly in deprived areas. Tackling the 700,000 empty homes across the country is described as a “top priority” in the strategy, and a key feature in the drive to increase the provision of affordable housing.
• Plans to consult on increasing discounts under right to buy – the scheme which allows social housing tenants to buy their properties. The discount will be up to half the value of the property, with receipts from the sales used to support the funding of new affordable homes for rent on a “one-to-one basis.”

Cameron continued to say,

“With this strategy we will unlock the housing market, get Britain building again, and give many more people the satisfaction and security that comes from stepping over their own threshold. These plans are ambitious – but we are determined to deliver on them.”

FreshStart Living have long been supporters of first-time buyers and our successful First Time Buyer Scheme. This is the Governments first step in parallel with FreshStart Living’s  thinking and we hope that the Government follows through and to help  first-time buyers to become proud home owners.

 

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