Leading local estate agents have welcomed news of the Government’s Help to Buy 2 scheme, which they say will provide a boost to the property market.
The Government’s initiative is designed to enable buyers who can afford only small deposits to buy a home.
A number of banks and building societies are offering mortgages with deposits of just 5% as part of the scheme, with up to 20% of the loan being guaranteed by the Government
Jordan Mariner owner of Newton Fallowell, Mansfield said:“Consumers have grown accustomed to a limited supply of 95% mortgages ever since the recession, so the news of a bumper delivery will rightly cause a wave of excitement.
“The Help to Buy mortgage guarantee has a clear purpose and will answer a real need by giving options to first time buyers and those homeowners who have seen their equity eroded and been unable to make their next move.
“It’s undoubtedly a welcome initiative from a consumer point of view. With the government behind it, the market looks set for continued growth.”
Alistair Smith, Branch Manager Mansfield office Richard Watkinson and Partners added: “We consider the Mortgage Guarantee Scheme could really help those home owners who bought at the peak of the market and have seen their equity in the property erode in the downturn over the last 5 years, leaving them without a deposit to move on. Saving for a 5% deposit is more realistic than 25%, particularly when salaries have remained static and the cost of living increased. We hope this will help next time buyers, outside of the first time buyer market, to move up the ladder.
“Overall, both government funded schemes are great news for the residential market in the East Midlands.”