Government details plans to help homebuyers and build more homes

Mortgages and Home

Updated on 01 February 2012 | 4 Comments

Housing Minister Grant Shapps announces low-deposit mortgages won't just be open to first-time buyers and land for 80,000 new homes has been found.

The Government has announced more details of its schemes to help more people buy homes via low-deposit mortgages and build more new homes.

Housing Minister Grant Shapps said the NewBuy Guarantee scheme to help people buy new-build properties for a small deposit will be launched in March. The scheme will only require a deposit of £10,000 on new-build homes, regardless of whether the buyer is a first-time buyer or already owns a home.

What’s interesting about this is that it is now not just about helping first-time buyers, which is how it was promoted when the initial scheme was unveiled back in November. You can read more on the initial proposals in Government to help borrowers buy with 5% deposit.

The Government, builders and mortgage lenders will all join forces to underwrite these low-deposit mortgages. 

Shapps also said that he has identified enough Government land to build 80,000 new homes on. He is working with the likes of the BBC and Royal Mail to try and find land for an additional 20,000 homes by 2015.

He has also promised £45 million to help restart building at 18 sites where construction has stalled due to the economic downturn. This is projected to create 16,000 homes and up to 30,000 jobs.

In 2010-11, just 121,200 new homes were built, the lowest number in peacetime since the 1920s.

The Government will also local councils to keep the social rents they collect, instead of the money going to Whitehall. Grant Shapps said this will "give councils the freedom they need to build more homes in their area".

At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call freephone 0800 804 8045 or email mortgages@lovemoney.com for more help.

More: How to get a mortgage with a small deposit | How to stand the best chance of getting a mortgage

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