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Mortgage guarantee scheme ‘set to be extended for another year’ in Chancellor’s Autumn Statement


Jeremy Hunt is poised to extend the mortgage guarantee scheme for another year amid fears soaring mortgage rates are hitting families. 

The Chancellor is expected to announce that the arrangement will be kept in place at the Autumn Statement next month.

The Treasury is also examining options for a new kind of Isa encouraging people to save for a first home, according to the Sunday Times. 

There has been growing concern about the pressures on first-time buyers and those who need to remortgage, with cheap deals vanishing.

The Bank of England has hiked its base rate to 5.25 per cent, from just 0.1 per cent in December 2021, in a desperate bid to rein in inflation.

Chancellor Jeremy Hunt is expected to announce that the arrangement will be kept in place at the Autumn Statement next month.

Chancellor Jeremy Hunt is expected to announce that the arrangement will be kept in place at the Autumn Statement next month.

There has been growing concern about the pressures on first-time buyers and those who need to remortgage, with cheap deals vanishing

There has been growing concern about the pressures on first-time buyers and those who need to remortgage, with cheap deals vanishing

The mortgage guarantee scheme was introduced by Rishi Sunak, then Chancellor, in March 2021 to keep the housing market moving during the pandemic.

It allows prospective homeowners to buy a property worth up to £600,000 with a deposit of just 5 per cent.

Part of the risk for lenders of requiring such small deposits is underwritten by the government, stimulating the market.

The scheme is scheduled to close in December, but Mr Hunt is now expected to announce a 12-month extension when he delivers his fiscal statement on November 22.

There have been calls for new support for first-time buyers since the Help to Buy policy ended in March this year.

However, Downing Street and the Treasury are said to have ruled out reviving the George Osborne scheme because of concerns it would drive up inflation again. 

The mortgage guarantee scheme was introduced by Rishi Sunak, then Chancellor, in March 2021 to keep the housing market moving during the pandemic

The mortgage guarantee scheme was introduced by Rishi Sunak, then Chancellor, in March 2021 to keep the housing market moving during the pandemic



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