David Cameron brings Expanded Help to Buy Scheme forward by 3 Months

David Cameron brings Expanded Help to Buy Scheme forward

At the Conservative Party conference last week, David Cameron unveiled plans to bring the Government’s expanded Help to Buy Scheme in three months early, instead of waiting until January 2014.

The scheme is aimed to assist buyers who in recent years have been unable to get on the property ladder because they lack the high deposits now required by mortgage lenders.

Under the scheme, the government will offer to guarantee up to 15 percent of a mortgage for seven years, allowing people with only a five percent deposit on any property worth up to £600,000, to obtain a mortgage. In exchange for the guarantee, the government will charge a fee of up to 0.9 percent of the loan’s value.

The Royal Bank of Scotland, NatWest and Halifax have announced that they will start taking applications this week, with HSBC, Virgin and Aldermore joining the scheme later. The Council of Mortgage Lenders, which represents lenders, said those who apply will still face rigorous affordability checks, to ensure that mortgage payments can be met.

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This article has been prepared for general interest and information purposes only; it does not constitute legal advice and should not be relied on as such. While all possible care has been taken in the preparation of this article, no responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by the firm or the authors.