The government’s Help to Buy Mortgage Guarantee Scheme will cease from 31st December 2016. The scheme was designed to aid those with very little deposit amounts, to climb the housing ladder.
In a letter to Bank of England governor Mark Carney, the Chancellor, Philip Hammond, said the mortgage market had become less reliant on the Help to Buy mortgage guarantee, with over 30 lenders now offering mortgages worth 90-95% of a property’s value independently of the scheme.
The Chancellor of the Exchequer, Philip Hammond, said: “Our Help to Buy schemes are helping hundreds of thousands of people, especially first time buyers, achieve home ownership. We are continuing the popular Equity Loan and ISA schemes to ensure people can access support when buying or saving for a property. We are determined to help make home ownership a reality for hard working people.”
Housing and Planning Minister, Gavin Barwell, added: “As these figures show, this Government is supporting thousands of first time buyers, helping them to get their first step onto the housing ladder.
“I am delighted to see that the Help to Buy: Equity Loan scheme, in particular, continues to be hugely successful and has now helped a landmark 100,000 households to own their own home.”
The Help to Buy ISA and the Equity Loan Scheme will remain in place.