Mortgage guarantee scheme to help remortgages

Announced as part of the 2013 budget, the mortgage guarantee scheme will launch in January 2014 and will be available to first time buyers or home owners.

The scheme will allow borrowers to take out a loan with a deposit as low as 5% with the remaining 15% provided by the Government to protect against losses.

The scheme will potentially be available to borrowers looking to remortgage. This is being offered only on repayment loans and for remortgaging with a new lender. It will not be accepted for existing loans with the same lender.

Jan Luthman, the co-manager of Liontrust Macro Equity Incom and Liontrust Macro UK Growth funds said, "Challenger banks will be able to offer borrowers who have loans with other banks the opportunity to remortgage with the protection of the Government's mortgage guarantee scheme, while incumbent banks will not be able to access the scheme to protect their existing mortgage loan books."

If remortgages are covererd under the scheme, Luthman suggests this could cause a "rapidly growing number of homebuyers seeking to remortgage at lower levels of interest rates."

If you are looking to release capital in your property by remortgaging or you are changing lenders, our remortgage solicitors at Richardson Law can help.

Our dedicated team of conveyancing lawyers will help ensure that your remortgage runs smoothly and efficiently.

To speak to one of our team for an initial quote, contact us on 01625 522 429.

Richardson Law

Manchester Remortgage Solicitors

Wilmslow, Cheshire & South Manchester