Good news for potential home buyers: when the Welsh Government published the Wales Infrastructure Investment Plan for Growth and Jobs in May they committed to create a Mortgage Scheme to help first-time buyer get onto the property ladder.
It has now been confirmed that the three-and-a-half year scheme will start in the Spring of 2013.
As stated by Peter Black, Shadow Minister for Housing, "it will be of immense help to people that want to own their house and can afford the monthly repayment, but cannot gather the deposit necessary".
The need for this scheme is nurtured by the necessity to prepare for Welsh growth, as stated in the Cardiff Local Development Plan. Wales is growing, there is not enough housing for everyone in cities like Cardiff. Something needs to be done to help people get a mortgage to get the market moving.
The Government Scheme plans to help make new build homes more affordable to first-time buyers. It will also help buyers who live in areas of housing pressure climb up the property ladder. The money spent on helping future home owners is expected to fuel the economy by allowing house builders to work and therefore by creating construction jobs.
In order to allow potential buyers to find a home, a partnership will be created between the Welsh Government and the house builders who will act as guarantors for the buyers. Buyers will pay 5% of the deposit. It should allow future home-owners to afford more expensive places they can pay for but cannot have access to because of restrictions from banks which demand large deposits. If you don't have a deposit to ask for a mortgage, the Mortgage Scheme is made for you.
With a £27m guarantee the Government hopes to create a £500m investment in housing. The scheme will support the purchase of about 3,000 new homes in the 3½ years, for houses with a value up to £250,000. It will hopefully stimulate the Welsh housing market.
For some more details on the Welsh Mortgage scheme, look at the article published on the Government information website available in English and Welsh.