The Autumn Statement has sparked much speculation about its impact on the UK property market as we approach 2024. This statement is crucial as it outlines the government's economic plans.
One point of contention has been the future of the mortgage guarantee scheme, which allows potential buyers to secure a mortgage with 95% loan to value on properties up to £600,000. With this scheme, buyers only need a 5% deposit.
For instance, someone buying a £100,000 property would only need a £5,000 deposit.
Introduced in the 2021 budget, the scheme has alleviated some of the financial burden associated with obtaining a mortgage. It has been particularly popular among first-time buyers, accounting for 86% of scheme users.
Originally set to expire in December 2023, after an extension in 2022, many hopeful buyers were anxious about its future availability.
Now, we have exciting news from the Autumn statement given on November 22nd by Jeremy Hunt to the House of Commons. The government has extended the mortgage guarantee scheme for an additional 18 months. First-time buyers now have until June 2025 to take advantage of this opportunity.
This extension has been warmly welcomed by first-time buyers nationwide. The mortgage guarantee scheme lightens the initial financial burden faced by those entering the property market.
Paul Nurding, the Managing Director of Embrace Financial Services, expressed his enthusiasm about the extension:
The scheme's extension is a significant development, offering relief to those who have been diligently saving for their first mortgage over the past few years.
Therefore, now is an excellent time to consider your homeownership options. The Office for Budget Responsibility forecasts a possible 4.7% decrease in house prices in 2024. If you plan to sell, listing your property before year-end could be advantageous. And if you're looking to buy, you can start your search now to prepare for the new year.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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