Prime Minister confirms new mortgage affordability plans

Prime Minister, Boris Johnson, has confirmed there will be more help available for those wanting, but struggling, to become homeowners. 

What’s changing?

Johnson has acknowledged the frustrations working people face, who are stuck paying high monthly rent, yet struggling to afford a deposit to get on the property ladder. 

He states, "They're trapped, they can't buy, they don't have the security of ownership, they can't treat their home as their own or make the improvements that they want. So, it's time for change.’*

For those in this situation, the government is looking to give them a choice of how they receive their housing benefits. They can either spend their benefits on rent or put it towards buying their first house. 

How is this going to happen?

The government wants lenders to change their way of thinking when it comes to affordability. They’re hoping to encourage lenders to take notice of tenants who pay rent on time as being reliable, and therefore worthy of a mortgage. 

Johnson also mentioned that he’s going to extend the current Right to Buy scheme (the right to buy your own home at a discounted price), with more details to follow later. Watch this space…

Boris also wants to protect those with savings from having their Universal Credit payments reduced. He’s planning to achieve this by discounting Lifetime or Help to Buy ISA savings from Universal Credit eligibility rules.

Keep an eye out for the latest developments on this story. 

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