Home buyers will now be able to borrow up to 95% of the sale value as part of a new plan by the government as part of it’s strategy to build more new homes and boost home ownership.
Building more homes is one of the government economic priorities with the number of new homes being built at its lowest level since World War 2. The cost of renting a property is also particularly high leaving would-be home owners with little chance to save for their first home.
Low Amount of Mortgages being Approved
Another problem plaguing the property market currently is the low amount of mortgages being approved. Figures show that only 121,200 new homes were available last month and experts say that number is half of what is needed.
Allowing home buyers to borrow up to 95% on their mortgage will help first-time buyers, which in turn will help get the rest of the market moving, although it remains to be seen if this strategy will work long term.
Key proposal by the Government
- Mortgage of up to 95% of the value of new homes to be offered
- £400 public funds for developers
- Large discounts for social tenant that want to buy there property
- More public sector land available for new builds