First-time homebuyers in Neath Port Talbot will be given support to get on the housing ladder, thanks to a new Welsh Labour Government scheme.

Aberavon AM, David Rees, has welcomed the mortgage guarantee scheme which is due to be rolled out in the Spring of 2013. Available to all buyers in areas of housing pressure and first time buyers across Wales, it will support the purchase of up to 3,000 new build homes up to value of £250,000.

Rather than funding being made directly available to buyers, the Welsh Government and house builders will act as guarantors so that buyers can secure high loan to value mortgages that would not otherwise be available to them. Buyers will contribute a 5% deposit.

David Rees AM said:
“Homeownership is such an important part of an individual’s independence and sense of security; allowing them to create a secure foundation on which to build a future for themselves and their family. Unfortunately, it has become a luxury which is unavailable to a large percentage of the population who are unable to get onto the housing ladder. ”

“I’m delighted that first-time homebuyers are to receive this additional support. The mortgage guarantee scheme should also give a boost to the construction industry; creating jobs and stimulating the local economy at the same time.”

Welsh Labour’s Housing Regeneration and Heritage Minister, Huw Lewis said:

“This innovative scheme is excellent news for potential house buyers, the housing industry and the wider economy.

“Not only will it help people whose plans for buying their first home or for moving to a bigger home have stalled due to lending restrictions from banks, but it will also provide house builders with potential new customers, and therefore will boost house building which will in turn create jobs and stimulate growth.”