Osborne offers help for first-time homebuyers

LONDON Wed Mar 23, 2011 1:40pm GMT

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LONDON (Reuters) - The government will offer loans to help first-time buyers get on the property ladder, Chancellor George Osborne said on Wednesday.

In his 2011 Budget, Osborne said the shared-equity scheme would cost 250 million pounds and be funded from the proceeds of last year's bank levy.

"A new shared equity scheme, First Buy, will be available for first-time buyers who want to purchase a newly built property, but who cannot afford the high deposits," Osborne told parliament.

"This will help 10,000 families get on to the housing ladder for the first time."

Osborne also announced that he would extend for another year its "Support for Mortgage Interest" scheme, something he said would reduce mortgage arrears for around 100,000 out-of-work homeowners.

(Reporting by Christina Fincher; Editing by Mike Peacock)

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Comments (1)
ektope wrote:
The UK economy came to near collapse because of the high house prices and the uncontrolable up to 100% mortgage loans given by banks (Halifax,Nothern Rock etc) . Now the government is repeating the same mistake. The basic law of supply and demand should be left alone to adjust the house prices to the affortability rate. It is as simple as that.This government interference will cause much more problems to the UK economy at a later date and houssing crash will be much worst with catastrophic economic consequences.

Mar 23, 2011 8:44pm GMT  --  Report as abuse
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