Is help for first-time buyers on the cards?

The government is considering extending its mortgage guarantee scheme as part of measures to help first-time buyers in the upcoming Autumn Statement.

As reported nationally in the last 24-48 hours 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 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. 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, one of a package of measures that the Treasury is examining ahead of the Autumn Statement to help people get on the property ladder. The department is also reportedly considering a new Individual Savings Accounts, or ISA, to encourage potential buyers to save for their first home as other ISAs, such has Help to Buy, which rolled-out in 2015 under former chancellor George Osborne ended on 31 March. Chancellor Jeremy Hunt will announce the Autumn Statement on 22 November.

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