New scheme to help first time buyers

The video discusses the challenges in the mortgage market, highlighting the end of high-percentage mortgages and the difficulty of saving for deposits. It introduces a government-backed scheme aimed at helping 100,000 prospective homeowners by offering 95% mortgages for new builds, with the government and builders sharing the risk. The scheme's success depends on competitive interest rates, which are yet to be disclosed. Critics argue it may not be effective unless cheaper than existing low-deposit deals, and it could reduce the number of buyers for existing properties.

What has caused a paralysis in the mortgage market according to the video?

• A decrease in government support

• An increase in housing prices

• The disappearance of high-percentage mortgages

• The rise of 100% and 120% mortgages

How does the new buyer guarantee aim to assist prospective homeowners?

• By reducing the deposit requirement for newly built homes

• By increasing the value of existing homes

• By providing 100% mortgages

• By offering interest-free loans

What is a significant benefit of new builds mentioned in the video?

• They are cheaper than existing homes

• They create jobs for builders

• They have lower interest rates

• They require no deposit

Why do banks consider new builds a riskier investment?

• They require a smaller deposit

• They are associated with higher default rates

• They are often located in less desirable areas

• They have higher maintenance costs

What is a potential downside for current homeowners if the scheme is successful?

• A reduction in government subsidies

• A rise in interest rates

• A decrease in the number of buyers for existing properties

• An increase in property taxes