Chancellor Jeremy Hunt has reportedly scrapped the idea of a 99 per cent mortgage scheme after lenders raised concerns.
First reported in The Telegraph, it has been suggested that lenders warned the Treasury this would lead to a rise in defaults.
Speculation of a 99 per cent mortgage for first-time buyers has been circulating since January, when it was rumoured that Hunt would introduce the scheme at the Spring Budget on 6 March.
This would require buyers to put down a one per cent deposit and have the 99 per cent mortgage loan guaranteed by the government.
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Link to Original Article: Mortgage Solutions - Hunt drops 99 per cent mortgage idea just days before Budget – reports