Potential home owners can benefit from the Help to Buy scheme from 2014.
The scheme is intended to help first time buyers get on the housing ladder by offering government “mortgage guarantees”. Prospective buyers would contribute 5% of the value of the property and the government will then guarantee a further 15%.
The intention is to enable people to afford bigger mortgages with smaller deposits. A buyer will be able to get a 95% mortgage as opposed to only being able to lend 80% of the value of the property.
For those who want to build new homes the scheme will also offer interest free loans for 5 years for up to 20% of the value of a newly built home. The buyer contributes 5% as a deposit. The scheme is available to anyone looking to build a new home worth up to £600,000. The loan is repaid only when the property is sold.
Previous schemes have only gone so far as to help first time buyers and those with an income of less than £60,000.