Low deposit mortgages announced

The Government has announced a new low deposit scheme called NewBuy, that will bring the intial deposit amount required to purchase a new property down significantly from the average 30% that has killed the first time buyer market. It is hoped that participants in this scheme would only need to find 5% of a new property, which still equates to a hefty £9,000 of a £180,000 dwelling.

Detractors of this Government initiative are seeing it's main purpose as a means of fuelling growth in the construction industry, which will ultimately reduce unemployment, a huge Goverment priority at the moment.

However, a number of builders and lenders who lent their support to this project initially, have since decided not to participate and this could dilute the effects of NewBuy.