The UK government is considering extending its mortgage guarantee scheme as part of measures aimed at assisting first-time buyers in the upcoming Autumn Statement.
The Treasury is exploring the possibility of extending the scheme, which allows people to secure a mortgage with a 5% deposit, for another year. The scheme was first introduced in March 2021 and was designed to encourage lenders to provide mortgages to borrowers with smaller deposits.
This potential extension comes as interest rates have risen from historic lows, making mortgages more expensive. Other measures being considered include a new Individual Savings Account (ISA) to encourage potential buyers to save for their first home and increasing the upper limit on house purchases funded by a Lifetime ISA. The final decisions will depend on official forecasts of the health of the public finances.