First-time buyer help extended

The Treasury is planning to extend its mortgage guarantee scheme, which has underwritten £4.4bn in low-deposit home loans since it was launched last year amid fears that first-time buyers could be frozen out of the mortgage market. The scheme was unveiled by the government in April 2021 and has helped 21,000 first-time buyers secure home loans with relatively small deposits. But it is due to end on December 31 and there have been concerns that this could lead to low-deposit mortgage deals disappearing again, amid fears over falling house prices and a forthcoming recession. Treasury sources said the government was weighing up whether to extend the scheme, but that it was likelier than not that it would continue. An announcement on its future is expected early this week. 

The Sunday Times (18/12/2022)