Cameron Announces State-Backed 95% Loans for New Build Homes
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U.K. Prime Minister David Cameron said today that state-backed mortgages will allow buyers with small cash deposits to get loans for as much as 95 percent of the value of a newly built home.
To spur housing construction, the government will underwrite part of the loan to buyers of new properties. Instead of the typical 40,000-pound ($63,000) deposit they needed previously for a 200,000-pound property, people will be able to purchase a house with a deposit of about 10,000 pounds.