It has been announced by the Government that a temporary scheme designed to help home buyers will be made permanent.
The Mortgage Guarantee Scheme was introduced in 2021 and offers support with the deposits usually demanded by mortgage companies. Solicitors dealing with conveyancing in North Wales expect to become busier over the next year, as more customers access this initiative.
Mortgage lenders have been the ones thus far to provide the loans to cover up to 95 percent of property prices, leaving the buyer to add five percent of value from their own resources. The Government guarantee a large portion of the overall cost of the house, resulting in less risk for the lender. With a lower risk threshold, mortgage firms have been keen to adopt the scheme.
From next month, the Chancellor of the Exchequer will ensure this arrangement becomes permanent, and solicitors in North Wales are preparing for a large influx of buyers wanting to use their services to help secure the purchase. More people with a modest deposit amount will have access to the property market and, ultimately, access to the finances they need to buy a home.
Although there are critics of the scheme, stating that even a small deposit is out of the reach of many people, the initiative has received a largely positive reaction.
Be sure to contact us here at Bennett Smith Solicitors today, and book a meeting with one of our experts to talk about the recent update.
