Key points of todays Budget and how it helps the mortgage and property market 
The announcement which will probably be of most interest to First Time Buyers is the Mortgage Guarantee scheme – a new government backed guarantee to help banks launch new 95% LTV mortgages.  
 
The scheme will be open for new mortgage applications from April 2021 to December 2022 
 
Lloyds, NatWest, Santander, Barclays and HSBC are the first to say they are getting ready with new products from April, with Virgin Money to launch in May. All mortgages will need to be repayment, not interest-only on a loan to value of between 91 to 95 per cent and are subject to the usual affordability rules. All participating lenders will also be required to offer a five-year fixed rate product as part of its guaranteed range of mortgages. however, this is thought not to apply to investment purchases. This is designed to further push the Government's ideal of switching Generation Rent to Generation Buy 
 
HSBC’s head of buying a home, Michelle Andrews, said: “We’re delighted to once again be supporting the Government Help to Buy scheme. Here at HSBC UK we’re committed to supporting people to get on to, or move up the property ladder. This scheme will make a real difference in enabling more first-time buyers and home movers, with a minimum of 5 per cent deposit, to get the keys to their new home, and we’re excited to play our part in it.” 
 
Government guarantee to underwrite 95% LTV deals BUT this has happened before and if the same as before, % rates might be quite high. Maybe, if possible, it might still be prudent to strive a bit more for a 10% deposit and get much better mortgage rate? 
 
The government will review the continuing need for the scheme towards the planned end date and has capped the bill for the scheme at £3.9bn. 
 
The other major announcement for the housing market is the extension of the Stamp Duty payment holiday for another three months. 
 
Rishi Sunak said "The cut in stamp duty I announced last summer has helped hundreds of thousands of people buy a home and supported the economy at a critical time. But due to the sheer volume of transactions we're seeing, many new purchases won't complete in time for the end of March." He added: "Then, to smooth the transition back to normal, the nil-rate band will be £250,000 - double its standard level - until the end of September and we will only return to the usual level of £125,000 from October 1." 
 
H D Consultants works closely with one of the UK's leading mortgage and compliance groups, Primis Mortgage Network, which is part of the LSL Property Services plc. PRIMIS Mortgage Network proposition director, Vikki Jefferies has today said “The new 95% mortgage guarantee scheme will be a lifeline for many aspiring homeowners, particularly those who have been held back during the crisis, and for the biggest lenders who have a desire to support this community but have been constrained during the last 12 months. I am confident that today’s news will be met with great enthusiasm from the lender and adviser community and I am hopeful that, in the months to come, the measures announced will enable a growing number of young borrowers to step onto property ladder and contribute to the ongoing growth of the mortgage market.” 
 
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