Categorized | International

New Buy Guarantee Gets Backing from UK Government

Please Share!

In an effort to provide a boost to the national housing market and economy, the government of the United Kingdom has opted to back the New Buy Guarantee. The scheme will supposedly make it possible for at least one hundred thousand current and future homeowners to buy a home with far small deposits.

 

Through the guarantee, homebuyers will now only need to produce a deposit of five percent to secure a mortgage instead of the usually twenty percent. Some of the United Kingdom’s biggest banks and lenders are participating in the program, hoping that it will provide a much-needed boost to the market.

 

Government officials believe that the program will be influential in help house builders and developers to get back on their feet. There is also hope that the measure will improve unemployment rates, as more workers will be able to work at any of the new building sites.

 

Economists believe that the measure will help those who normally wouldn’t consider buying a home to be more open to the idea. The New Buy Guarantee will help to increase overall inventory supply, as builders and developers would be more likely to build new homes than they would without the agreement.

 

The measure will also go a long way in boosting the confidence of consumers who normally would opt to stay away from buying. With a lessened deposit, those that may not have previously been able to afford a deposit suddenly have the chance to become homeowners. The measure increases their options, and makes the housing market more attractive.

Please Share!

About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

Leave a Reply

Twitter Chat