The Government has today launched its Openmarket Homebuy scheme that it says will help an extra 20,000 people buy their own home.
The Government has teamed up with four private sector lenders, Nationwide, Yorkshire Building Society, Advantage and Bank of Scotland to offer the mortgage, though BoS’s offering will not launch until later this year.
Borrowers only need a mortgage for 75 per cent of the property’s value, with the Government and lender splitting the share of the remaining 25 per cent.
The scheme is limited to public sector key workers, social tenants or those on a council waiting list, plus other priority first-time buyers.
Housing Minister Yvette Cooper says: “We want to help more families get a first step on to the housing ladder. In the long run we need to build more homes to ease the pressure on house prices. But in the meantime, this new mortgage deal will help thousands of families into a home of their own.”