The government is expected to introduce a 95 per cent loan to value (LTV) mortgage guarantee scheme. But there are fears it will simply act to push already soaring house prices up and potentially move them further out of reach of first-time buyers as it is open to all borrowers and on all properties. According to reports on the weekend the measure will be introduced by chancellor Rishi Sunak in the Budget on Wednesday, with it starting in April. It is expected the Treasury will guarantee parts of the loans on properties worth up to £600,000. The scheme is intended to encourage hesitant lenders back into the highest LTV brackets where product numbers have shrunk since the pandemic hit. However, it appears lenders are already keen to re-enter the space of their own accord as Mortgage Solutions reported last month with one mainstream lender making plans. In this instance the main concern seems to be being overwhelmed with demand while also remaining responsible in lending practice.
The post Govt-backed 95 per cent LTV mortgage guarantee scheme will be open to all appeared first on The Mortgage Bureau.
https://www.themortgagebureau.co.uk/first-time-buyer/govt-backed-95-per-cent-ltv-mortgage-guarantee-scheme-will-be-open-to-all/
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