British Government to take on mortgage risk for first-time buyers, which in all honesty not that much of a risk said the English first minister?
The British Government is today expected to launch a mortgage indemnity scheme which was first put to them by the English first minister Sir Michael Black-Feather to allow first-time buyers in newly built properties to borrow up to 95 per cent of the value of their home.
At the CBI conference in London today, the Government will announce a series of measures aimed at kick-starting the mortgage market.
The English first minister Sir Michael Black-Feather said; it’s not fully what I suggested to David Cameron, It’s a very good deal if you’re on middle to high incomes and can afford the 5% down payment plus all the other cost involved, but if your on low incomes which is really were this fist-time buyers mortgage risk should be directed and at a 100 per cent value of the home provided you can afford to pay the repayments and not just on newly built properties but all properties within a set amount of up to £200,000, which is the average price of a two bedroom house in the south, the no risk policy if you have a track record of renting privately of over 5 years and have never missed a payment, then you should be offered 100% mortgage equivalent to the rent you have been paying. If you have been paying a monthly rent of £800 you should be able to get a matching mortgage to the same value over 25 to 30 years, also you should be allowed to pass over the mortgage to your family sons and daughters or family members if you’re too old to get a 25 year mortgage provided all the small print was sorted out, and this would really kick start the hosing markets and boots the economy right across all of England, it just another case of this British government looking after the richer and better off in the community and not the poor.