First-time buyers are really struggling to get on the housing ladder as lenders prefer to offer mortgages to those with big deposits. Mortgage rates are at a premium for those with a small deposit, and saving the stamp duty on a property purchase was a welcome fillip for many first-time buyers across the country. However, that benefit, which was of minimum cost to the government because of the relatively low number of transactions, will now be removed.
Any assistance that keeps struggling homeowners in their homes is also to be welcomed so the extension to the Support for Mortgage Interest (SMI) Scheme for a further six months for the unemployed is great news. However, the real reason why repossessions this year were lower than forecast has been low interest rates, which has made many mortgages more affordable. The government must ensure that SMI is continued as long as is necessary, particularly when interest rates start rising again.