Help-to-buy scheme for house buyers (From Herald Series)

Help-to-buy scheme for house buyers

2:46pm Wednesday 20th March 2013 in National News © Press Association 2013

First-time home buyers were given good news as the Government outlined plans to breathe life into the ailing housing market and boost the construction industry.

A new help-to-buy scheme for those struggling to find mortgage deposits will include £3.5 billion for shared equity loans, and a Government interest-free loan worth 20% of the value of a new-build house.

The Chancellor said the scheme will be available to everyone who wants to buy a home from next year.

A new mortgage guarantee, sufficient to support £130 billion of loans, will help people who cannot afford a big deposit.

The Government will also offer interest-free loans for five years for those wanting to buy new-build homes.

The loans will be available to those who can find a 5% deposit with the loan worth up to 20% of the value of a home worth up to £600,000 and repayable when it is sold.

Chancellor George Osborne told the Commons: "The deposits demanded for a mortgage these days put home ownership beyond the great majority, who can't turn to their parents for a contribution.

"And that's not just a blow to the most human of aspirations, it's a setback to social mobility and it's been hard on the construction industry too.

"This Budget proposes to put that right, and put it right in a dramatic way."

The announcement was cautiously welcomed by lenders and estate agents, and the share prices of some housebuilders went up by as much as 7% as a result of the a