Lloyds Banking Group has welcomed the Help to Buy mortgage guarantee scheme announced in George Osborne’s Budget speech yesterday (March 20th).
Mortgage director of the financial institution Stephen Noakes said the initiative is set to give the housing market a much needed boost and address the issue of accessibility.
In his announcement, the chancellor revealed £5.4 billion is being invested in the programme, which is made up of an equity loan – where the government will lend homeowners up to 20 per cent of the value of their new-build property – and a mortgage guarantee, to incentivise lenders to make more deals available for people with small deposits.
Mr Noakes claimed the Help to Buy scheme will get more individuals on and moving up the property ladder, adding: “Crucially, this scheme will not only help first time buyers but also second steppers, a key segment of the housing market that is also in need of more support and attention.”
The expert further stated the fresh support unveiled by Mr Osborne will have a knock-on effect across the whole of the housing market and he expected it could help around 50,000 people a year.
