Help to buy plan praised

DUP Councillor Mark Fielding has welcomed the Government’s Help to Buy Mortgage scheme, an initiative designed to allow those who can afford only small deposits to buy a home.

By The Newsroom

Published 30th Oct 2013, 08:50 BST

He said: “The Help to Buy Mortgage Scheme will give local people an opportunity to enter the housing market by being able to get a mortgage with a deposit of just 5%.The lender offers a mortgage covering the other 95%.

“Deposit Demands have been much higher than 5% for many first-time buyers since the start of the financial crisis, usually about 20% of the value of a home.

Under the scheme Lenders sign up to the Help to Buy scheme and pay a fee to the government, which will provide a seven-year taxpayer guarantee covering 15% of the loan value. That guarantee can be called in if the borrower defaults.

“The scheme is good news for first time buyers with property values significantly reduced from a few years ago, a smaller deposit will provide an opportunity to buy.”