Home Ownership Unaffordable Despite 95% Mortgages

 The government’s scheme to turn generation rent into generation buy will not help single thirtysomethings get on the property ladder in much of England and Wales. The mortgage guarantee scheme will support banks and building societies to offer 95% loans, meaning that buyers only have to raise 5% themselves. Single buyers in their 30s on the UK median wage will still be locked out of buying a home in about half of local authority areas. Although two salaries will make it easier to raise a large mortgage, those on the UK median earnings for that age group will be unable to afford to buy a home in all of London and parts of the south and east. Read more on the Guardian website.

https://www.theguardian.com/uk-news/2021/apr/19/home-ownership-unaffordable-despite-95-mortgages-analysis-shows

Sunak Says Mortgage And Stamp Duty Measures Will Create 'Generation Buy'

A phased end to the stamp duty holiday and a government guarantee for 95% mortgages will turn “generation rent” into “generation buy”, the chancellor has claimed. Rishi Sunak said the stamp duty holiday he announced last summer had “helped hundreds of thousands of people buy a home and supported the economy at a critical time”, but that many purchases would not complete before the original deadline of 31 March. Responding to calls from the industry for a tapered extension to prevent buyers facing unexpected bills, he said that in England and Northern Ireland the threshold for the tax to start would remain at £500,000 until 30 June. Read more on the Guardian website.

https://www.theguardian.com/uk-news/2021/mar/03/rishi-sunak-mortgage-stamp-duty-holiday-budget