The scheme was introduced in 2013 to increase the availability of
high loan to value mortgages.
This helps lenders to offer more and better rates of interest on
high loan to value mortgages (80-95%).
This decline was not anticipated and is said to be a reaction to a new policy from the Bank of England in its effort to limit the number of
high loan to value mortgages, introduced at the end of June.
The Welsh Government and house-builders will act as guarantors so that buyers can secure
high loan to value mortgages, contributing just a 5% deposit.
Rather than making funding directly available to buyers, the Welsh Government and house builders will act as guarantors so that buyers can secure
high loan to value mortgages which would not otherwise be available to them.
And some great fixed rate deals and
high loan to value mortgages available mean it really is the time for buyers - particularly first timers - to make a move.
The range of
high loan to value mortgages also comes with zero fees, with tracker interest rates from 3.
Well, because for all the problems with old-style MIGs, they did at least enable borrowers (and particularly first time buyers) to obtain the
high loan to value mortgages they needed.
Extending the scheme will provide a boost for first time buyers and can help avoid
high loan to value mortgages.
The Government has set aside PS12bn of guarantees for up to PS130bn of
high loan to value mortgages and phase two is expected to remain open for three years.
Rather than funding being made directly available to buyers, the Welsh Government and house builders will act as guarantors so that buyers can secure
high loan to value mortgages that would not otherwise be available to them.
Lord Turner said: "Both some customers and some lenders relied on the assumption that ever rising house prices would reduce the risks otherwise inherent in
high loan to value mortgages.
