George Osborne will be meeting with mortgage lenders and key house builders to talk about the extension of a Government housing stimulus initiative.
The Chancellor is expected to disclose further details of the Government’s intention to underwrite a large numbers of mortgage loans through state guarantees thanks to the ‘Help to Buy’ programme. If it is extended, a number of areas in the country would be set to benefit, so we could yet see a sudden entourage of loft conversions in the Wirral and other areas of the UK
The first round of the scheme opened earlier this year, providing loans to allow people the opportunity to buy a new-build property with as little as a five per cent deposit. The initiative has received credit for a notable rise in home sales and prices.
Osborne will be holding a meeting with building firm executives, including Taylor Wimpey and Persimmon, in addition to key lenders such as Barclays and Lloyds Banking Group, to talk over the programme. He said:
“I’m determined to back people who want to do their best for their families. Help to Buy is about getting behind those who aspire to own a home. The mortgage guarantee will support an increase in high loan-to-value mortgages for people who can’t afford large deposits, and it will also boost housebuilding.”
He went on to say that lenders possess they information they require in order to prepare for the launch next January.