Mortgage guarantee introduced

The launch of a UK-wide mortgage guarantee scheme has been welcomed by Housing Minister Nelson McCausland. ‘Help to Buy’ is being offered through several banks in Northern Ireland. The Government guarantees up to 15 per cent of a property’s value and allows potential buyers to purchase a home with a 5 per cent deposit; the balance is covered by a mortgage. The mortgages are based on a repayment basis and borrowers will be subject to the standard affordability and income verification checks conducted by lenders.

“This scheme should help to give many more local people an opportunity to enter the housing market and the net benefit of this across our local economy should be a welcome boost,” McCausland said.

“I am delighted that many banks have already decided to get involved and I hope more will be looking to see what new mortgages products they could offer.”

Participating lenders include RBS, Halifax and HSBC.

The scheme is administered by the Treasury and the policy work was carried out by Westminster’s Department for Communities and Local Government.