Boris Johnson recently said his government are planning to launch a comprehensive review of the mortgage market in order to examine how access to low-deposit mortgages can be improved.
During his speech on the economy, he said; “Today, I can announce a comprehensive review of the mortgage market, reporting back this autumn it will look at how we can give our nation of aspiring homeowners better access to low-deposit mortgages.”
This announcement was part of a wide-ranging speech setting out his economic vision of how the country will cope with rising global inflation.
“Many working people paying high rents could afford to pay a mortgage but struggled to save up for historically high deposits”.
“The ever-spiralling price of a house or flat has so inflated deposit requirements that saving even just 10% is a wholly unrealistic proposition for them,” he said.
A separate statement was subsequently issued by the government informing that the review had the aim of making it easier for renters by widening access to low-cost, low-deposit finance such as 95% mortgages.
“This will be the first comprehensive review of the mortgage market for a decade, seeking bold and innovative steps that government and industry can take to support more first-time buyers into homeownership.