Chan­cel­lor ex­tends guar­an­tee scheme

Yorkshire Post - Property - - PROPERTY -

THE Bud­get en­cour­aged buy­ers as the Chan­cel­lor an­nounced a new mort­gage guar­an­tee, ex­tend­ing the pre­vi­ous NewBuy scheme to older houses as well as new-builds.

It will run for three years from the start of 2014 and the plan is that mort­gages from ma­jor high street lenders will be un­der­writ­ten by the government.

De­fault­ing bor­row­ers may lose their 5 per cent de­posits. The government would pay just un­der 15 per cent of the out­stand­ing amount, while the lender would be li­able for the rest.

“We’re go­ing to help fam­i­lies who want a mort­gage for any home they’re buy­ing, old or new, but who can­not be­gin to af­ford the kind of de­posits be­ing de­manded to­day,” said Mr Os­borne.

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