Recession hits hard the Government backed property scheme

Government Scheme - lets-do-diy.comAccording to the Times Online you need to have a large deposit, faultless credit rating and a reasonable salary if you want to buy a home with help from a Government-backed scheme.

Due to last year's credit crunch, the shared-ownership scheme designed to benefit tenants with low incomes is not proving to be affective due to mortgage lenders no longer offering finance unless large deposits are paid up front.

Jim Munson from the Metropolitan Home Ownership, a London housing association, says that there has been a rise in the number of people relying on the parents for help.

"We are seeing a lot more people with double-barrelled surnames and backing from the bank of mum and dad," says Jim Munson.

"Buyer types have changed because eligibility terms have opened up to allow people earning up to £60,000 a year to apply and because saving requirements are much more stringent. Without 100 per cent mortgages available, buyers need a 30 per cent deposit to get a decent interest rate."

Posted by Thomas Morris

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