Enable Independent are pleased to see that the Treasury is in the process of holding talks with the main lenders and trade bodies to see how mortgage indemnity guarantees can be used to enable would-be- buyers access to 95 per cent LTV (loan-to-value) mortgages, to buy any type of property.
Last March, the Government launched the NewBuy, MIG (mortgage indemnity guarantee) scheme, offering 95 per cent LTV mortgages for new builds, as a way of giving a boost to the economy and the construction industry. The NewBuy, MIG scheme has been underwritten by both the government and the housebuilder.
Three large lenders, NatWest, Nationwide and Barclays launched products for the NewBuy scheme, including NatWest who offered a two-year fix at 4.29% at 95% LTV with a £499 fee, and a five-year fix at 4.99% at 95% LTV with a £499 fee.
However the scheme has proved too restrictive for people wanting to buy anything other than a new property, so nearly one year on from its launch, the Treasury is now looking into ways in which mortgage insurance could be used to solve the problem, of people accessing 95% LTV mortgages for other properties.
One of the main problem facing new or first-time buyers is the amount of money needed to put down to buy a house, there have been several articles covering topics such as ‘Are Britons becoming a Nation of renters?’ Home ownership in the past for many young people has become a distant dream. Recent figures show that there has been a huge rise in private renting over the past few years, from 9% of households to 15%.
A Treasury spokeswoman stated: “We have said that we will do more to help families who can afford a mortgage, but are unable to raise a large deposit, to buy their own homes. We are continuing to look at what can be done and will provide further details in due course.”
If you are struggling to get a mortgage, and need help in finding ways to put aside enough funds, then why not contact your local Independent Financial Advisors, we have all of the knowledge to help you to plan your future to become a home owner, as well as access to the entire mortgage place.
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