Brown Plans Cheaper Mortgages for First Time Buyers
New part-ownership plan will bring cheaper mortgages to first time buyers
24th May 2005
Chancellor Gordon Brown has revealed details of a new scheme to help first time buyers get a foot on the property ladder.
Under the plan, buyers would only have to get a mortgage for part of the total cost of a property, with up to 50% of the equity in the house being shared by the government and the mortgage lender.
As time went on and the borrowers' incomes rose, the payments could be increased and amount of equity shared reduced.
The move is part of a concerted effort to increase home ownership, with first time buyers priced out of the market in many areas.
The plan will only apply to newly built property, and measures will need to be in place to ensure borrowers are genuinely struggling to buy a house on their income, rather than people wanting to buy a 'dream home' worth far more than they can realistically afford.
A pilot scheme has proved successful according to the Treasury, and it's estimated that the plan could result in up to two million more homeowners compared to 1997.
Read More: BBC Report
|
More on First Time Buyers : Morgan Stanley Launches Flexishare Mortgage (News, 01/08/2006), Property Prices to Rise by 50% in 6 Years (News, 18/07/2006), Mortgage Deposits Take 5 Years to Save (News, 30/01/2006), First Time Buyers Taking Even Longer to Save Deposit (News, 08/12/2005), New Lenders Join HomeBuy Scheme (News, 06/12/2005), See all 18 First Time Buyers stories >>> |
Home - Mortgages
