December 2023- 95% Mortgage Guarantee extended

The scheme was due to end in December 2022, but was initially extended until December 2023. However, in the 2023 Autumn Statement, the Chancellor extended it again and the mortgage guarantee scheme will now run until the end of June 2025.

 

June 2023- Help for Mortgage borrowers

The Government has announced a new mortgage charter, agreed with the UK's principal mortgage lenders and the Financial Conduct Authority, to help those with mortgages as interest rates continue to increase.

Some of this support is for all people who are seeing rises in their repayments but there are two other specific areas of focus: people who are at real risk of losing their homes because they fall behind in their mortgage payments, and those who are having to change their mortgage because their fixed rate comes to an end.

The lenders, covering 75% of the market, have agreed the following to support residential mortgage holders:

  • Anyone worried about their mortgage repayments can call their lender for information and support, without any impact on their credit score.
  • Customers won’t be forced to have their homes repossessed within 12 months from their first missed payment.
  • Customers approaching the end of a fixed rate deal will be offered the chance to lock in a deal up to six months ahead. They will also be able to apply for a better deal right up until their new term starts, if one is available.
  • A new agreement between lenders, the FCA and the government permitting customers to switch to an interest-only mortgage for six months or extend their mortgage term to reduce their monthly payments and switch back to their original term within the first six months if they choose to. Both options can be taken without a new affordability check or affecting their credit score.
  • Support for customers who are up to date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without another affordability check.
  • Providing well-timed information to help customers plan ahead should their current rate be due to end.
  • Offer tailored support for anyone struggling and deploy highly trained staff to help customers. This could mean extending their term to reduce their payments, offering a switch to interest only payments, but also a range of other options like a temporary payment deferral or part interest-part repayment. The right option will depend on the customer’s circumstances. 

More information can be found on the Government Website: Chancellor agrees new support measures for mortgage holders - GOV.UK (www.gov.uk)

MAY 2023- SKIPTON LAUNCHES UK’S FIRST 100% NO DEPOSIT MORTGAGE SINCE 2008

Could this be the solution you are looking for?

Renters struggling to save for a deposit can now get a 100% mortgage from Skipton Building Society. It's the first no-deposit deal – that doesn't require a guarantor's backing – to launch in the UK since 2008,

Skipton's 100% mortgage is only available to first-time buyers who have paid their rent in full (and on time) for at least 12 months

Skipton's 100% mortgage is a five-year fixed mortgage and works similarly to other fixed mortgage deals on the wider market, in that you are charged the same interest rate for a five-year period. The main difference is that Skipton's new deal doesn't require a deposit.

This mortgage is aimed at renters who are struggling to save for a deposit (though those who do have a deposit – as long as it's smaller than 5% – can also apply). It's been launched in an era of spiralling rents and increasing property prices. To get one of these mortgages, you:

  • Need to be a first-time buyer and 21 years of age or above (this applies to all applicants).
  • Need to have been renting for at least 12 consecutive months out of the past 18 and be up to date on all rental payments during this period. Proof of this will be required, which could be via bank statements or confirmation from a letting agent.
  • Need to be up to date for at least 12 consecutive months out of the past 18 on household bills, such as council tax and electricity and/or gas. Again, proof will be required.
  • Can't have missed any other repayment commitments over the past six months – such as Netflix subscriptions, mobile phone repayments and so on. Any defaults will show on your credit report.
  • Aren't looking to buy a new-build flat.
  • You can only borrow the equivalent of, or less than, what you pay on rent each month

For more in information click on the link: Skipton launches UK's first 100% no-deposit mortgage since 2008 – which Martin Lewis says could be a 'sensible' option for some renters (moneysavingexpert.com)

 

Help to Buy Agent for the South Update

Help to Buy for the South phone lines will close at 5pm on Friday 31 March and reopen at 9am on Monday 3 April.

Applications for Help to Buy: Equity Loan closed at 6pm on Monday 31 October 2022. There can be no exceptions or extensions.

Homebuyers eligible for Help to Buy: Equity Loan might have until 31 May 2023 to buy their homes.

To benefit from this extension your homebuilder must apply and meet the criteria.

Please check with your homebuilder and conveyancer that you can reach legal completion on time.

Find out more about the closure of the scheme on GOV.UK.

January 2023 - Government Help to Buy scheme to end

Applications for Help to Buy: Equity Loan closed at 6pm on Monday 31 October 2022. There can be no exceptions or extensions.

If you're a homebuyer eligible for an equity loan, check with your homebuilder that they can finish building your home in time.

You must legally complete by Friday 31 March 2023 and you’re expected to have the keys to your home by 6pm.

Find out more about the closure of the scheme on GOV.UK.

 

What help is available post Help to Buy Equity Loan scheme?

One option may be the, Deposit Unlock scheme

With the new Deposit Unlock scheme, first time buyers and home movers can buy a new build home with just a 5% deposit. You can only buy a home from a house builder participating in the Deposit Unlock scheme (see a list below) and using a mortgage offered by a participating lender (currently Newcastle Building Society, Nationwide and Accord Mortgages).

The scheme was developed by the Home Builders Federation, the body that represents housing developers, along with reinsurance firm Gallagher Re. While the Deposit Unlock scheme is still fairly new, it may prove popular with buyers as a way to purchase a new build home with a small deposit as lenders are often reluctant to offer high loan-to-value mortgages on new build homes. It is also likely to fill the gap after the Help to Buy Equity Loan scheme, which let first time buyers purchase a new build home with a 5% deposit, closed to new applicants in October 2022.

For more information 

Deposit Unlock Scheme Explained - HomeOwners Alliance (hoa.org.uk)

 

Government extends Mortgage Guarantee Scheme and Stamp Duty relief

 

The Mortgage Guarantee Scheme will be extended by a year to the end of December 2023, helping people with 5% deposits on to the property ladder

  • The Mortgage Guarantee Scheme will be extended by a year, having already helped over 24,000 households get onto the property ladder
  • Launched in April 2021, the scheme supports first-time buyers, who make up 85% of scheme transactions, buy a home with a 5% deposit
  • The scheme is just one of the ways the government is helping people with home ownership

Under the scheme the government offers lenders the financial guarantees they need to provide mortgages that cover the other 95%, subject to the usual affordability checks, on a house worth up to £600,000.

Launched in April 2021, the scheme has already helped over 24,000 households. It was originally planned to close at the end of this year but will now be extended until the end of 2023.

To also support people to get onto the property ladder, the government has increased the level where first-time buyers start paying stamp duty from £300,000 to £425,000. Furthermore, first-time buyers can get relief on properties costing up to £625,000, as opposed to £500,000 previously. Both of these measures are time-limited to April 2025.

The government has also continued to provide a range of other options to support home ownership and the wider housing sector. For example, the Help to Buy ISA and Lifetime ISA have collectively facilitated over 618,000 households get on to the property ladder.