Ahead of Jeremy Hunt’s Autumn Statement this afternoon, Mick Fallon, Partner at Howells Solicitors, has been sharing his take on the government’s upcoming decision regarding the mortgage guarantee scheme.
In this comment, Fallon discusses how this extension could revolutionise first-time home buying with just a 5% deposit, potentially halving the current required amount, which will change the landscape of property ownership.
Mick Fallon said: “We’re closely monitoring the government’s upcoming deliberations on the extension of the mortgage guarantee scheme, which allows first-time buyers to get their foot on the property ladder with just a 5% deposit. This would be welcome news for renters, as the current economic climate has made it increasingly challenging for individuals to save up a 10% deposit, making homeownership more attainable and in turn stimulates the property market as a whole.
“Given the current economic uncertainty, with rising mortgage rates and inflation, many first-time buyers are grappling with the decision of whether to buy a home now or wait for market conditions to improve. The introduction of a mortgage scheme with a 5% deposit by the Treasury will significantly increase accessibility to the property ladder, which will come as a relief for those aspiring to own a home.“
