This is the most significant government intervention in the property market since former Conservative Chancellor, Nigel Lawson, withdrew dual tax relief on mortgages in 1988.
From the 7th of October thousands of local people, currently in rented, living with parents or locked into “Zombie” mortgages might now be able to buy, or move up the market, with just a 5% deposit.
The early introduction of this scheme – 3 months sooner than originally announced – and on the eve of the Tory Party Conference – has taken the property sector by surprise and will offer people the chance to get on the property ladder much sooner than expected.
Our advice to would-be buyers is to speak to an Independent Financial Advisor who is familiar with the scheme, to see if you qualify and to search out the best rates available. Currently only state-owned banks are currently ‘signed-up’ to the scheme but this early announcement will undoubtedly bring other lenders into the market.
There have been suggestions – including from coalition minister Vince Cable, just days before the announcement – that this scheme might create a “housing bubble” by fuelling demand in a market where property is in short supply – but we believe it will release many properties to the market where the owners can afford a bigger mortgage but could not previously afford the deposit for their next home.
More details will shortly be released and our own appointed mortgage advisors will shortly be holding a series of ‘Help to Buy’ evenings in our Exeter offices to help provide more information and guide people through the process.
For more information, contact Wilkinson Grant & Co on 01392 427500.