Budget helps new buyers

This year's Budget will help first-time buyers onto the property ladder, according to the Department for Communities and Local Government.

Alistair Darling delivered his first Budget today (March 12th), announcing a host of new home loans designed to help new buyers and key workers.

The DCLG believes that the announcements will boost the chances of first-time buyers making it onto the property ladder by up to 50 per cent.

From April, two new equity loans will be made available through the Open Market Home Buy scheme.

Previously the loans could only be taken out for up to 32.5 per cent of a property but this has now been increased to 50 per cent.

In addition, more choice has been added to the type of mortgages which the scheme applies to.

"We have already helped more than 95,000 households onto the housing ladder since 1997 through our low-cost homeownership schemes. These new products will help us do even more," said Caroline Flint, housing and planning minister.

"Not only will the new loans increase affordability for key workers and first-time buyers, they are a lot more flexible, allowing buyers to shop around for the best mortgage deals," she continued.

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