The scheme is intended to help people get a mortgage to buy their own home.
Many people have been unable to take the first step on to the property ladder because they can’t raise enough money for a deposit.
Help to Buy: mortgage guarantee means the buyer needs to raise only a 5% deposit on a property, with the government offering a guarantee of a further 20%, so the risk to the lender is reduced.
The scheme is available to both new buyers and existing homeowners. It is in addition to the Help to Buy: equity loan scheme which came into effect on 1 April 2013 and applies to new build properties only.
Most of the major banks have launched products that can work alongside the government schemes, making it easier for first time buyers to purchase their own home.
Prime Minister David Cameron said: “Too many people have found themselves frozen out of the market in recent years as a result of the size of the deposit required.
“That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfil their aspirations and enjoy the security of owning their own home.”
The property market will be a key factor in the country’s recovery from the recession, and new house building is currently growing at its fastest rate since 2008.
Please contact Ingrid Hindle or Jo Ayrton in our Warminster office on 01985 214444, or Sandra Smith or Sarah Gratton in Westbury on 01373 865577, or email firstname.lastname@example.org if you would like more information about the legal aspects of buying or selling a home.