Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Boris Johnson promises low deposit mortgages

Boris Johnson

Johnson said his Government would help people get onto the property market with low-deposit mortgages, which could be revolutionary for young people

Boris Johnson has said he wants to create a ‘Generation Buy’ where young people are helped to purchase homes with mortgages requiring low deposits.

In an interview with The Telegraph, the Prime Minister said he believed a ‘huge’ number of people felt excluded from home ownership in the UK.

But he said his Government would ‘fix’ the issue by helping people get onto the property market with low-deposit mortgages.

He told the newspaper: I think a huge, huge number of people feel totally excluded from capitalism, from the idea of home ownership, which is so vital for our society. And we’re going to fix that – ‘Generation Buy’ is what we’re going for.

Mr Johnson said mortgages that help people get onto the housing ladder were needed, ‘even if they only have a very small amount to pay by way of deposit, the 95% mortgages’.

He said that low-deposit mortgages could be ‘absolutely revolutionary’ for young people.

The Telegraph reported that Mr Johnson had asked ministers to work on plans encouraging long-term fixed-rate mortgages with 5 per cent deposits.

It comes as more than 1,000 low-deposit mortgage deals have vanished from the market in the past six months, according to findings by Moneyfacts.co.uk last month.

By early September, there were just 76 deals for borrowers with deposits of 10 per cent or less, while in March there were 1,184 mortgages at 90 per cent, 95 per cent or 100 loan-to-value (LTV) available – meaning a fall of 1,108 deals.

Mr Johnson spoke about the issue ahead of the online Conservative Party conference, which begins on Saturday and continues to October 6.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.