Monday, 26 Oct 2020

Boris Johnson vows to slash mortgage deposits to just 5% for first-time buyers

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Boris Johnson has promised 5% mortgage deposits for first-time buyers in a bid to transform “generation rent” into “generation buy”.

The Prime Minister announced the policy in his virtual speech at the Conservative Party Conference today, October 6.

He said it was “disgraceful” that levels of home ownership among under-40s had plummeted.

Johnson pledged to “fix our broken housing market”.

He told viewers: “We will make it faster and easier to build beautiful new homes without destroying the green belt or desecrating our countryside.

"But these reforms will take time and they are not enough on their own.

"We need now to take forward one of the key proposals of our manifesto of 2019.

"Giving young, first-time buyers the chance to take out a long-term, fixed-rate mortgage of up to 95% of the value of the home – vastly reducing the size of the deposit."

The PM claimed the policy could create 2 million more owner-occupiers in “the biggest expansion of home ownership since the 1980s”.

He added: "We will help turn generation rent into generation buy."

The Conservatives ended the Help to Buy mortgage guarantee scheme at the end of 2016.

It offered lenders a guarantee on a 95% mortgage through government assistance.

  • Boy, 3, found dead with two other bodies inside home after police smash down door

If the buyer missed a payment on a loan, the government stepped in to cover some of the cost.

In his speech, Johnson also dismissed reports that Covid-19 had "robbed me of my mojo”.

He described them as "nonsense" and said "no power on earth" will stop him.

Deputy Labour leader Angela Rayner said: "The British people needed to hear the prime minister set out how he and his government will get a grip of the crisis.

"Instead we got the usual bluster and no plan for the months ahead.

“We end this Conservative conference as we started it: with a shambolic testing system, millions of jobs at risk and an incompetent government that has lost control of this virus and is holding Britain back.”

  • Boris Johnson

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