Freedom to Buy mortgage guarantee announcement - statement by HomeOwners Alliance
"There’s not too much to get excited about here. The Mortgage Guarantee Scheme was originally launched to encourage lenders to offer 95% mortgages but lenders no longer need that nudge. Earlier this year, the number of 95% LTV mortgage deals hit nearly 400, the highest level in almost five years.
Since the scheme operates entirely behind the scenes between lenders and government, we don’t expect first-time buyers will notice any difference. This feels more like a political gesture than a practical solution to the housing crisis.
If the government really wants to support first-time buyers, it should turn its attention to fixing the Lifetime ISA. Right now, anyone forced to withdraw their savings early faces an unfair penalty — losing 6.25% of their own money. And the £450,000 property price cap hasn’t moved since LISAs launched in 2017, despite soaring house prices, particularly in the South East. Reforming LISAs would make a real, practical difference to those trying to get on the ladder.”
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