Rishi Sunak Promises 5% Deposits for First Time Buyers

Rishi Sunak Promises 5% Deposits for First Time Buyers. Image: Wikimedia

CHANCELLOR OF THE EXCHEQUER, Rishi Sunak, is set to announce help for first time home buyers in the form of mortgages with just five per cent deposits.

The proposal will see lenders incentivised to offer mortgages with five per cent deposits for first time buyers.

Under the leaked plans, Chancellor Rishi Sunak plans to incentivise lenders to provide mortgages to first time buyers and current homeowners to buy homes worth up to £600,000 (€692,000).

The politician is set to announce the news on Wednesday, when he will detail how the government will offer lenders the guarantee they require to provide mortgages to cover the remaining 95 per cent.

The proposal is based on former chancellor George Osbourne’s Help to Buy scheme following the UK’s financial crisis.

Boris Johnson has said he wants to turn young people from, “generation rent to generation buy.”

The prime minister earlier told one publication: “I think a huge, huge number of people feel totally excluded from capitalism, from the idea of home ownership, which is so vital for our society. And we’re going to fix that – “Generation Buy” is what we’re going for.

“We need mortgages that will help people really get on the housing ladder even if they have only a very small amount to pay by way of deposit, the 95 per cent mortgages. I think it could be absolutely revolutionary, particularly for young people.”

The Treasury explained low-deposit mortgages were now rarely being offered due to the economic impacts of the coronavirus pandemic.

Thank you for taking the time to read this news article “Rishi Sunak Promises 5% Deposits for First Time Buyers”. For more UK daily news, Spanish daily news and Global news stories, visit the Euro Weekly News home page.

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Sally Underwood

Sally Underwood is a former aide to several former cabinet members and now contributes her views on Parliament’s ever-changing shape in her column for the Euro Weekly News.