Future plans to help first-time buyers

Investors and developers are looking to provide alternatives to the Help to Buy programme and the Government’s 95% mortgage scheme. In one plan, banks will “top up” small deposit mortgages using funds from institutional investors. Banks will still provide 85% of the loan; an institutional investor will top up the remaining 10%, opening up the 5% deposit market for borrowers. Another plan, Deposit Unlock, would allow for the purchase of new homes with a 5% deposit. In this case, developers will put up funds to guarantee lenders against losses if a property is repossessed, up to the first 40% of a loan, but it would be backed up by insurance.

The Daily Telegraph (25/04/2021)