Autumn Statement: UK Government Considering Help For First-Time Buyers
The UK government is considering extending its mortgage guarantee scheme as part of measures to help first-time buyers in the upcoming Autumn Statement.
It is understood the Treasury is looking at making the scheme, which helps people take out a mortgage with a 5% deposit, available for another year.
The scheme, first introduced in March 2021 by the then Chancellor Rishi Sunak, was designed to encourage lenders to give mortgages to borrowers with a smaller deposit.
Since December of that year, the interest rate has risen from a historic low to the current 5.25% as the Bank of England has sought to curb high inflation.
It has meant that mortgages have become more expensive for borrowers while many grapple with the higher cost of living.
Recent figures from financial information service Moneyfacts show that the typical rate for a five-year fixed mortgage has dipped to 5.99%. But a two-year fixed mortgage has a rate of 6.5%.
The mortgage guarantee scheme was extended for 12 months last year and is due to end in December.
However, it is understood the Treasury is considering keeping it in place for another year.