A ground-breaking scheme to help thousands of people buy their own home will be launched next week – three months earlier than planned – David Cameron will announce on today.
The Help to Buy mortgage guarantee scheme is aimed at young people and families who have been frozen out of the property market by the soaring size of deposits required to get a mortgage.
It was due to start in January 2014 but the Prime Minister said today (Sunday) that people will be able to start applying for the new mortgage guarantee from next week.
The Prime Minister said:
“Young people who’ve got a decent job and have got decent earnings – they cannot buy a house or a flat, because they have to have a £30,000, £40,000 or £50,000 deposit. Now, if you haven’t got rich parents, you can’t get that sort of money.
“So we’re going to launch the Help To Buy Scheme – it’s not coming in next year, it’s coming in next week, because I’m passionate about helping people who want to own their own flat or home.
“You take a nurse married to a teacher. They’re both earning £25,000 – that’s pretty close to average full time earnings. If they want to buy a £200,000 house, they’re going to have to find a £40,000 deposit.
“Now, they can’t do that, unless they’ve got rich parents. That’s not right. That’s not an aspiration nation.”