Freedom to Buy scheme to launch

July 12, 2024 by Mark

Property Market

A scheme designed to help people to buy their first home is expected to be introduced following the election win by the Labour Party, in the shape of Freedom to Buy.

This will take the place of the Mortgage Guarantee Scheme that was set up by the last government. If Labour is to have success with its new scheme though, it will need to make more first-time homebuyers aware of its existence. A recent survey that Barratt Homes conducted found that 88% of people buying for the first time did not know about the Mortgage Guarantee Scheme.

Furthermore, 87% of them told the survey that they did not know anything about guarantor loans in general. 63% were completely oblivious to the existence of the scheme known as First Homes, while 58% did not realise that they can apply for shared ownership mortgages.

51% of respondents said that they were not aware of Lifetime ISAs. That is more remarkable given that they are the affordability schemes that regularly top the list of most searched for, at 74,000 per month.

Speaking to Financial Reporter, Steve Mariner from Barratt Homes said that schemes of this kind were the best way for people to get into the property market:

“However, first-time buyers need to understand the ins and outs of each scheme first before deciding which would work best for them. This is why speaking to mortgage experts for guidance is always recommended.”

Those with CeMAP mortgage advisor training can provide this guidance.