DUP Councillor Mark Fielding has welcomed the Government’s Help to Buy Mortgage scheme, an initiative designed to allow those who can afford only small deposits to buy a home.
He said: “The Help to Buy Mortgage Scheme will give local people an opportunity to enter the housing market by being able to get a mortgage with a deposit of just 5%.The lender offers a mortgage covering the other 95%.
“Deposit Demands have been much higher than 5% for many first-time buyers since the start of the financial crisis, usually about 20% of the value of a home.
Under the scheme Lenders sign up to the Help to Buy scheme and pay a fee to the government, which will provide a seven-year taxpayer guarantee covering 15% of the loan value. That guarantee can be called in if the borrower defaults.
“The scheme is good news for first time buyers with property values significantly reduced from a few years ago, a smaller deposit will provide an opportunity to buy.”