A new permanent mortgage guarantee scheme has been launched by the Government as ministers step up their efforts to boost the market for first-time buyers (FTBs).

Many FTBs are racing to buy their homes before a stamp duty hike at the end of next month.

And now those who miss the deadline, as well as tenants facing rocketing rents, may be able to benefit from the mortgage guarantee offer.

Relax rules

The Government has also thrown its weight behind new proposals from the Financial Conduct Authority (FCA) to relax the application criteria for mortgages, saying it would like to see change implemented quickly.

For too long politicians have ducked and dodged the decisions needed to support homeownership.”

Emma Reynolds, Treasury Minister, says: “For too long politicians have ducked and dodged the decisions needed to support homeownership.

“Simplifying responsible lending rules and putting in place a permanent mortgage guarantee scheme shows our commitment to making the dream of owning a home a reality,” she says.

“I will work closely with regulators and industry to get this done quickly and in a way that supports as many people as possible.”

Locked out

And Housing Minister Matthew Pennycook (main image) says: “The affordability challenges facing first-time buyers mean that we now have a generation locked out of homeownership.

“This government is determined to change that, ensuring that young families and hardworking renters can buy a home of their own.”

The new Mortgage Guarantee Scheme will replace the existing offer, which was due to expire this year.

In January, FCA said it will investigate ways to simplify home lending rules brought in following the 2008 financial crisis.