Under the 'Help to Buy', buyers need to provide a small deposit, with the government offering a guarantee of 15% of the loan to the lender - for a fee. That fee, charged to the lender, is up to 0.9% of the original loan level. Borrowers who apply will face checks to make sure that they can afford the mortgage payments.
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The Mid Ulster MLA said: "Hopefully this scheme will encourage aspiring house buyers to invest in a home, and get a foot on the property ladder, which has proved very difficult, if not near impossible, for many first time homeowners in recent years.
"This type of scheme would also give a boost to the construction sector, and sub-contractors. For example, first time buyers may invest in properties in need of renovation, therefore, any type of boost to the sector is welcomed. There are tangible signs at the moment that house prices are starting to bottom out so, for anyone with access to the finance, my opinion is that now is the time to buy.
"However, this scheme must not be the only measure to help first time buyers. Potential house owners believe government should have incentivised banks to introduce high interests savings accounts. This would allow them to save a sizeable deposit. Nonetheless, hopefully the other banks will sign up to the scheme, sooner than later."
(CD/IT)
