Chancellor extends guarantee scheme
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.