New buy mortgage guarantee scheme.

A new government run scheme will guarantee 95% loans up to £500,000. For those struggling to get on the housing market this is fantastic news and a long time coming.

The scheme is due to start in March and the only criterion imposed is that the borrowers must be UK residents and they are buying the property as their main home.

The scheme will allow lenders to offer large mortgages on new build homes without taking on all the risk, they will be guaranteed not to lose money if the property falls into negative equity and the house is repossessed, the mortgage indemnity will be funded by developers and taxpayers.

This scheme is a fantastic opportunity to get first time buyers back on the market and hopefully help around 100,000 buyers who have recently been at a standstill due to lack of finances.

Although the first time buyer market has become very competitive in recent months, rates on low deposit mortgages are still high and there are no so many options available since the credit crunch. Would be movers have also been hit hard with many being left with no equity in the property to move onto the next property.

To find out more information about the scheme contact Cavendish Ikin Estate Agents Cheshire.