CLWYD SOUTH AM KEN SKATES has welcomed news that First-time homebuyers in Wrexham will be given support to get on the housing ladder, thanks to a new Welsh Labour Government scheme.
The Mortgage Guarantee Scheme is due to be rolled out in the Spring of 2013. Available to all buyers in areas of housing pressure and first time buyers across Wales, it will support the purchase of up to 3,000 new build homes up to value of £250,000.
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. Buyers will contribute a 5% deposit.
Clwyd South AM Ken Skates said:
“I’m delighted that first-time homebuyers are to receive this additional support at a time when it is particularly difficult to get on the housing ladder. Housing pressures are one of the most frequently raised issues in my surgeries and I think this scheme could really help.
“The mortgage guarantee scheme will also give a boost to the construction industry in North East Wales, creating jobs and stimulating the local economy at the same time.
“Details of the scheme are being worked out, but I am sure that it will be a hit with hard pressed first-time buyers in Wrexham.”
Welsh Labour’s Housing Regeneration and Heritage Minister, Huw Lewis said:
“This innovative scheme is excellent news for potential house buyers, the housing industry and the wider economy.
“Not only will it help people whose plans for buying their first home or for moving to a bigger home have stalled due to lending restrictions from banks, but it will also provide house builders with potential new customers, and therefore will boost house building which will in turn create jobs and stimulate growth.”
• If homeowners default on the loan, any losses would be covered by any equity they have in the property in the first instance, followed by the house builder’s indemnity fund, which equates to 3.5% of the loan value. The Welsh Government would be third in line to make good any losses.