It is widely reported that Chancellor of the Exchequer, Jeremy Hunt, is planning to announce a 99% mortgage scheme.

The scheme will mean that first-time buyers will only need to raise 1% of the value of a house as a deposit.  This will allow many people, currently in rented accommodation, to make the switch to home ownership.  The government would provide backing for the loans.

There is concern, however, that the cost of these loans could be higher and, should there be any slip in house values, many new owners could find themselves in negative equity.

Commenting on Jeremy Hunt’s plans, Daniel Austin, CEO and Co-Founder at ASK Partners, a specialist, independent property lender, said: "This is positive news for the housing market as it will serve to reinvigorate the first-time buyer market, consequently driving more turnover of properties higher up the chain. This will be very welcome news for a generation of renters with no access to bank of mum and dad, who might now have a chance of home ownership.”

More details of the plan are likely to be announced in the Chancellor’s budget on 6 March, 2024.