A proposed new ‘Freedom to Buy’ mortgage guarantee scheme is unlikely to support prospective FTBs, according to Financial Conduct Authority (FCA) data analysed by Quilter.
Ahead of the General Election, the Labour Party promised that its policies would ‘support 80,000 young people to get on the housing ladder over the next five years.’
The new analysis reveals that since its launch in April 2021, the current mortgage guarantee scheme has supported only 44,368 people to get a mortgage. Of these, 86% were FTBs.
The total number of people between the ages of 18 and 30 securing a mortgage was 350,092 in 2023, down from a spike of 401,665 in 2021. Significantly, many prospective FTBs are finding it harder to secure a mortgage, as higher rates add a major obstacle.
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It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.