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Help to Buy extended by four years

The Government has extended its Help to Buy equity loan scheme by four years, the Chancellor George Osborne has announced.

The scheme has helped 25,000 households buy or reserve a new-build home. It was due to end in 2016 but has now been extended until 2020. An extra £6 billion will be invested to help 120,000 households buy a new-build home.

Under the equity loan scheme, buyers can place a five per cent deposit on a new-build home and take out a mortgage of up to 75 per cent of its value. The Government then provides a loan for the remainder (up to a maximum of 20 per cent).

George Osborne told the BBC: "I want to extend the Help to Buy scheme for newly built houses - it was going to end in 2016; we are now going to extend it for the rest of the decade."

The mortgage guarantee element of the scheme remains unchanged and is due to finish at the end of 2016.