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Budget 2013 - Help to Buy scheme

George Osborne has announced a new 'Help to Buy' scheme for first time buyers looking to get on the property market.

Buyers will be expected to put down a 5 per cent deposit while the government will put down an additional 20 per cent. The loan will only be repaid when the home sells and is only applicable to homes with a value of £600,000 or less.

For those looking to afford a mortgage, the government has proposed a 'Mortgage Guarantee' system which will help guarantee loans to lenders. Guarantees will only be granted based on responsible lending principles. It is said it could guarantee up to £130 billion worth of mortgages.

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