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What you need to know about Boris Johnson’s 5% deposit promise to first time buyers.

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Posted by Tishka Chapman on 21st October 2020

In recent news, Boris Johnson announced his promise to help young first-time buyers and transform ‘generation rent’ to ‘generation buy’ with 95% mortgages. One of our conveyancing experts share what you need to know and their thoughts about the proposed scheme.

“We need now to take forward one of the key proposals of our manifesto of 2019: giving young, first-time buyers the chance to take out a long-term, fixed-rate mortgage of up to 95 per cent of the value of the home – vastly reducing the size of the deposit. We believe that this policy could create two million more owner-occupiers – the biggest expansion of home ownership since the 1980s. We will help turn generation rent into generation buy.” said the PM.

In wake of the economic impact of the pandemic, this almost sounds too good to be true. Although there has been very little information provided about when this scheme will be introduced or how it will work, the announcement may provide some form of relief for young first-time buyers struggling to save up for a house deposit. When the scheme has been introduced we will update you with further advice and our experts will be here for you. Please follow Wolferstans Solicitors on social media where our legal experts will provide guidance in line with the latest updates and announcements.

Here is what one of our experts have to say and some tips for you to prepare for the alleged new scheme:

“This certainly sounds favourable to first time buyers and I am interested to see what the new scheme involves. Being a first-time buyer is a daunting experience but we are here to help you through the minefield. Do make sure you take professional advice from lawyers, financial advisers, surveyors, estate agents etc and do not be afraid to ask questions regardless of how trivial you may feel they are.” Tishka Chapman, Associate.