Budget 2013 - Mortgage help

George Osborne also announced a new mortgage guarantee, claiming it will dramatically increase the availability of loans.

"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," he said.

Starting in January 2014 the Government will underwrite a mortgage indemnity guarantee so that if a borrower defaults on a mortgage payment, the Government will step in and compensate the lender. This guarantee scheme will run for three years and will be used to support £130bn of mortgages.

"It's a great deal for homebuyers," said the chancellor.

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Budget 2013: Chancellor extends house-buying scheme

Today in the budget George Osborne announced new plans for people to buy their own homes.


The 'Help to Buy' scheme improves on a previous scheme known as FirstBuy. It enables buyers to put down a 5% deposit on a new home. Up to 20% of the cost of the home is funded by a "shared equity" loan, which will be repayable when the home is sold.

The shared equity loan is interest-free for the first five years. Following that the owner can then remortgage to a standard mortgage or continue with interest payments on the secured loan.

Previously the Firstbuy scheme was only open to first-time buyers, 'Help to buy' will be available to all buyers. The income limit of joint income less than £60,000 has been removed.

And will cover homes up to the value of £600,000.


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