New independent review of access to mortgages for first-time buyers
The Prime Minister has announced (9 June) that the government will launch an independent review of access to mortgage finance for first-time buyers, with the aim of making it easier for this group by widening access to low-cost, low-deposit finance such as 95% mortgages.
Currently, soaring house prices, stringent mortgage lending restrictions and high deposit requirements are hampering the ambition of many young people who want to own their own home. Over 50% of today’s renters could afford the monthly cost of a mortgage but various constraints mean only 6% could immediately access a typical first-time buyer mortgage.
This will be the first comprehensive review of the mortgage market for a decade, seeking bold and innovative steps that government and industry can take to support more first-time buyers into homeownership. The review will report back in autumn of 2022.
In the meantime, you can read about the government’s mortgage guarantee scheme.