With our industry being so intrinsically tied to the health and growth of the UK economy, it’s no surprise that the announcements that come out of Autumn Statements have huge impacts on the way mortgage brokers and protection advisers work. You can read our Autumn Statement blog recap here for the major headlines of the 2023 Autumn Statement.
Whilst there weren’t many announcements specific to our industry, there is one piece of good news that was shared in the Treasury’s Autumn Statement summary.
The Government has extended the Mortgage Guarantee Scheme for a second time until 30 June 2025, giving first-time buyers another 18 months to make the most of this scheme. It has helped over 24,000 households (as of November 2022*) overcome this barrier and secure the keys to a new home with a deposit as small as 5%.
A family affair
It’s no secret that first-time buyers need a helping hand getting onto the property ladder, especially with the average age of a first-time buyer having now climbed to 37** and 35% more using gifted deposits***.
Whilst the scheme is not restricted just to first-time buyers, this decision shows support for them and also places parents and family members firmly at the centre of the home-buying journey. It’s no wonder there are other similar initiatives available:
- Family assist schemes
- Joint borrower/sole proprietor mortgages
- Income boosters
- Deposit boosters
- Gifted deposits
In addition, Shared Ownership offers first-time buyers with small deposits similar support and opportunities but without family involvement.
Vikki Jefferies, Proposition Director shared her thoughts on the announcement:
“First time buyers continue to be a critical customer group that need more support than most. Any Government support is welcomed as is the delivery of product innovation to ease the burden of large deposits and affordability. At PRIMIS we work closely across the industry with lenders, and regulatory bodies to ensure these customers have a range of products to enable them to access their own homes.“
Options for your customers
Not all lenders are participating in the Mortgage Guarantee Scheme, but our Experts Helpdesk can assist you in finding the most suitable solutions for your customers.
Get in touch with the team at Experts@primis.co.uk.
*** https://www.financialreporter.co.uk/borrowers-using-gifted-deposits-increases-by-35-in-august.html
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