The government has announced that The Help to Buy mortgage guarantee scheme is set to close at the end of this year.
The mortgage guarantee scheme, launched by Osborne in 2013, allowed buyers to get 95% mortgages, a thing unheard of since before the recession. The chancellor says that the scheme is no longer needed because “more private lenders are offering 90% to 95% mortgages”.
The scheme has not been without its critics, but the figures show that it has certainly helped some people get on the property ladder. According to figures released by the Treasury, over 150,000 first time buyers were helped by the scheme which supported over 185,000 purchases in total. Over 95% of these purchases have been outside of London.
In his letter to Mark Carney, Governor of the Bank of England, the chancellor said the scheme had been “introduced with a specific purpose that has now been successfully achieved”. He also added: “It is important to note that the end of this particular scheme does not diminish in any way the Government’s commitment to supporting those looking to get on the housing ladder.”
Other schemes, like Help to Buy ISAs are still going to be in operation, but with favourable mortgage rates currently making it easier for buyers to acquire a mortgage deal, others will be coming to an