Latest news with #scheme
The Sun
20 hours ago
- Business
- The Sun
Mortgage guarantee scheme offering 95% loans confirmed in government plans
FIRST-TIME buyers with 5% deposits will continue to get help through a mortgage guarantee scheme, the government has confirmed today. The new scheme will be permanently launched from this month and means first-time buyers can borrow up to 95% of the home price. 1 It replaces the previous Mortgage Guarantee scheme which first launched in 2021 and ended last month. Plans to relaunch the scheme were initially laid out in the Chancellor's Spending Review earlier this month. The move, reiterated in government documents published today, allows buyers to purchase a home across the UK with just a 5% deposit. The government then provides a guarantee to the lender to cover some losses if the buyer cannot repay their mortgage and the property gets repossessed. It is significantly lower than the 10% or 20% deposit many lenders ask buyers to pay when securing a home. For example, if you bought a house for £350,000, you would only need to pay a deposit of £17,500. Someone required to pay a 20% deposit on a property of the same value would have to make a down payment of £70,000. Since the scheme began, over 53,000 mortgages have been completed using it, with a total value of £10.7billion as of December last year. The small deposit mortgage deals were previously popular leading up to the 2008 financial crash but were phased out afterwards. The scheme has been hailed as an accessible way for buyers to get on the ladder. But the larger loan-to-value ratio for the mortgage means buyers will pay higher interest rates when they make repayments. Rachel Reeves FINALLY addresses Commons tears after she and Keir Starmer put on awkward show of unity Peter Stimson, director of mortgages at lender MPowered Mortgages, said the move comes "a year too late". He said: "The mortgage market has changed a lot since Rachel Reeves swept into 11 Downing Street last July. 'The Base Rate has come down by a full percentage point and hundreds of 95% LTV mortgage products are now available. 'Every lender who wanted to offer a 95% loan is probably already doing so. "The Chancellor's announcement is unlikely to make dozens more suddenly follow suit - as the price of entry is unknown and will vary each year." Many lenders are offering their own take on the 95% mortgage. Nationwide just recently launched a 95% mortgage for buyers looking to purchase a new build home. The offer also allows customers to borrow six times their annual income through its Helping Hand scheme. Elsewhere, Skipton Building Society offers a 100% mortgage deal that allows you to buy a home without a deposit. A similar mortgage deal was recently launched by April Mortgages too. ALL CHANGE Mortgages will also be available at over 4.5 times a buyer's income, following recommendations from the Bank of England to loosen lending rules. This will create more than 36,000 additional mortgages for first-time buyers over the first year, the Government said. Britain's biggest building society Nationwide also announced plans last week to make its "Helping Hand" mortgage scheme for first-time buyers available to people on lower incomes. From Wednesday, eligible first-time buyers can apply for Nationwide's Helping Hand mortgage with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary – down from £55,000. It has been estimated that this will support an additional 10,000 first-time buyers each year. Brian Byrnes, head of Personal Finance at Moneybox, said: "It is encouraging to see steps being taken to support first-time buyers. "Enabling people to borrow more is not a silver bullet. "What first-time buyers truly need is not just the ability to take on more debt, but meaningful, long-term support to help them start saving and investing earlier in life so they can build up that all-important deposit." Elsewhere, plans to cut the tax-free allowance for cash ISAs have been put on hold by the Chancellor, after speculation that reforms to the savings account would also be announced. What help is out there for first-time buyers? GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home. Help to Buy Isa - It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it. Help to Buy equity loan - The Government will lend you up to 20% of the home's value - or 40% in London - after you've put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property. Lifetime Isa - This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top. Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you're restricted to specific ones. Mortgage guarantee scheme - The scheme opens to new 95% mortgages from April 19 2021. Applicants can buy their first home with a 5% deposit, it's eligible for homes up to £600,000.
BBC News
a day ago
- Business
- BBC News
Plans for £9.5m South Cave flood scheme announced
Plans have been announced for a £9.5m flood alleviation scheme in an East Yorkshire Cave, north of Brough, has suffered from flooding on a number of occasions, including in 2007 and 2014, when a significant number of properties were Riding of Yorkshire Council said it had secured government funding to construct a new flood storage area to reduce the risk during heavy approved, work could begin in 2028, a spokesperson added. The proposals involve constructing an embankment on South Cave Beck to intercept and temporarily store excess flows from upstream, which officials said would help to protect the village's 166 residential and 20 non-residential scheme has been awarded £7.4m from the Department for Environment, Food & Rural Affairs, administered by the Environment Agency, as well as a £790,000 local levy contribution from the Yorkshire Regional Flood and Coastal Committee. The council will also make a Paul West, cabinet member for environment and transport, said: "I'm extremely pleased we've been able to secure funding for this vital scheme designed to help shield the residents and businesses in South Cave from the devastation of flooding."The continued investment by the local authority and partner agencies will help to mitigate future demands on the network as a result of environmental change."Dean Hamblin, a senior advisor on flood risk management at the Environment Agency, added: "While we expect more extreme weather with the impacts of climate change, the scheme will reduce the likelihood of flooding and limit the wider impacts and disruption it brings in the future." Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Download the BBC News app from the App Store for iPhone and iPad or Google Play for Android devices
Yahoo
5 days ago
- Politics
- Yahoo
Downing Street ‘confident' UK-France migrant returns deal complies with law
Britain's migrant return deal with France is 'robust' against legal challenge and the EU is expected to approve the scheme, Downing Street has said, after the French President suggested it needed to be ratified before put into action. The UK is 'confident' the agreement complies with both domestic and international law and has discussed the plans with Brussels, Number 10 said on Friday. The one in, one out migrant return scheme set out by the Prime Minister and Emmanuel Macron is due to begin within weeks, but still needs final legal verification and consultation with Brussels. Asked whether the Government was concerned about the scheme potentially being held up in the courts, a Number 10 spokesman said: 'We've done a lot of work to make sure the system is robust to legal challenges, and of course, France is a safe country and a member of the ECHR. 'We're confident that this arrangement complies with both domestic and international law, and clearly… we've discussed these arrangements already with the (European) Commission.' The Prime Minister is holding talks with his Cabinet at an 'away day' at Chequers, his grace-and-favour Chequers country estate, on Friday after securing the agreement on Thursday. Ministers expect the commission to support the arrangement, Downing Street said, amid concerns among some European governments that migrants who have travelled to Britain could end up back on their territory. Under the pilot scheme, for each small boat migrant sent back across the English Channel an asylum seeker will be allowed to enter the UK from France under a legal route. By resetting our relationships across Europe, my government has made new levels of co-operation possible. For the first time, migrants arriving via small boat will be detained and returned to France — smashing the business model of people smuggling gangs. — Keir Starmer (@Keir_Starmer) July 11, 2025 No details have been given about how many people will be covered by the pilot, but French officials had indicated it could initially be limited to about 50 a week – a small fraction of the weekly average this year of 782. Speaking to broadcasters on Friday, Home Secretary Yvette Cooper declined to put a number on the scheme but she insisted it would 'fundamentally undermine' the people smugglers organising the crossings. Meanwhile, crossings continued in the Channel on Friday, with HM Coastguard confirming UK Border Force and RNLI vessels had been sent to respond to 'multiple incidents' involving small boats. At least 21,000 people have already made the journey since January, putting 2025 on course to be a record year for crossings. To those considering dangerous Channel crossings – there is now no guarantee you will remain in the UK. The UK-France pilot agreement undermines the business model of the criminal gangs who profit from endangering the lives of migrants. — Home Office (@ukhomeoffice) July 11, 2025 The returns scheme will be accompanied by a crackdown on illegal working in the UK as the Government attempts to address the 'pull factors' encouraging people to attempt the crossing from France. The Home Office said authorities would soon undertake 'a major nationwide blitz targeting illegal working hotspots, focusing on the gig economy and migrants working as delivery riders'. Deliveroo, Uber Eats and Just Eat have already committed to ramp up facial verification and fraud checks over the coming months after being called in for talks with ministers. Mr Macron has repeatedly stressed the need for the UK to avoid attracting migrants, saying 'you should not underestimate the impact the situation has' in parts of northern France around Calais and Dunkirk. He said a third of illegal migrants entering Europe's Schengen border-free area sought to eventually reach the UK, and welcomed measures to tackle illegal work. Prominent figures including former head of MI6 Sir Alex Younger and former Labour prime minister Sir Tony Blair have made the case for digital ID cards to deter Channel crossings. Number 10 has publicly downplayed the prospect of introducing such a measure but said the Government was 'always looking for a range of solutions'. Asked on Friday why the proposal was not part of Government plans, a spokesman said: 'It is not Government policy. 'Our focus is on a huge rollout of e-visas, with more than 10 million of them already issued, clearly. 'As we demonstrated over the last couple of days, we are always looking for a range of solutions to both illegal migration and illegal working. But mandatory ID cards are not parts of our plans.' Sir Keir said the 'completely unprecedented' scale of the crackdown on illegal working would mean for cross-Channel migrants that 'the jobs they have been promised in the UK will no longer exist'.
BBC News
5 days ago
- Politics
- BBC News
UK-France migrant deal 'robust' against legal challenges, Yvette Cooper says
The home secretary has said the new "one in, one out" migrant scheme agreed with France on Thursday is "robust" enough to withstand potential legal Cooper said she had been in close contact with European governments which have expressed concerns about the deal, saying that the European Union had been "very supportive and helpful".She told BBC Breakfast the government had done "a lot of work to make sure that the system is robust to legal challenges", which stymied the previous government's efforts to deport some illegal migrants to home secretary Chris Philp described the plan to return an expected 50 migrants a week to France as a "gimmick". Sir Keir Starmer and French President Emmanuel Macron signed a deal on Thursday which will see the UK return migrants who arrive in small boats back to scheme - which will initially run as a pilot - proposes that for each migrant the UK returns, Britain will accept another who has made a legal claim in France, which both countries say will act as a deterrent. Cooper would not be drawn on how many migrants would be exchanged under the deal, though it is expected the pilot will involve around 50 people a said the government would "provide updates" on figures as the pilot home secretary said the pilot scheme would be accompanied by a plan to target those working illegally in the UK, which she said was a pull factor driving small boat crossings. Asked what would happen if a migrant who is returned to France attempts to cross the Channel a second time, she said they would be "returned again" and banned from the UK asylum dismissed the plan as "another gimmick" that will allow the majority of illegal migrants to remain in the UK, and said Labour's pledge to "smash the gangs" had not said the Rwanda scheme originally proposed by Boris Johnson would have seen "100% of illegal arrivals being removed" and described Sir Keir's decision to axe the plan as a "catastrophic" mistake. Cooper said only four migrants had ever been sent to Rwanda and on a voluntary basis, and described the previous government's approach to migration as "chaos".Since 2018, when figures began to be gathered, more than 170,000 people have arrived in the UK in small boats. Numbers this year have reached record levels with nearly 20,000 arriving in the first six months of Thursday, Macron said the scheme would have a "deterrent effect" beyond the numbers returned, and suggested Brexit had made it harder for the UK to tackle illegal migration.
CBC
16-05-2025
- Business
- CBC
Lawsuit alleges Whitehorse immigration consultant scammed Yukon Business Nominee Program user
He claims he lost more than half a million dollars to the scheme. Jackie Hong has more.
