Budget 2013: Osborne gives homebuyers a leg up

House and key

Chancellor George Osborne has announced the Help to Buy shared equity scheme to give home buyers a leg up. 

The government will give people buying houses an interest-free loan of up to 20% of the value of a new build as long as they can put down a deposit of 5%.
The scheme will only be available on repayment mortgages and to borrowers with deposits of less than 20%.
Meanwhile a mortgage guarantee scheme will see loans of up to 20% of property value made to existing homeowners struggling to move up the property ladder. 
Stephen Noakes, mortgage director at Lloyds Banking Group, said: "Since the launch of the government's Funding for Lending scheme we have seen mortgage rates hit an all-time low, really making a difference to affordability. These proposals will, just as importantly, address accessibility, and provide a genuine solution to the challenge of raising a deposit. Working together these two schemes will get more people on and moving up the property ladder.
"Crucially, this scheme will not only help first time buyers but also second steppers, a key segment of the housing market that is also in need of more support and attention. 
"Whilst the property market is likely to continue to be challenging, the fresh support announced today will have a real knock on effect across the whole of the housing market and we expect it could help around 50,000 people a year."

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