Government introduces the Green Homes Grant to make homes across England more energy efficient

A new Green Homes Grant Government scheme enables homeowners in England to get vouchers worth up to £5000 to make their home more energy efficient.

From the 30th September this year if you are a homeowner or landlord you can apply for a Green Homes Grant voucher towards the cost of making your home more energy efficient. 

These improvements could include installing low-carbon heating to lower the amount of carbon dioxide your home produces, insulating your home to reduce your energy usage or replacing single glazing windows with double glazing.

If you are to apply for a Green Homes Grant you must redeem the voucher and ensure that all improvements are completed by 31st March 2021.

The Green Homes Grant vouchers will cover two-thirds of the eligible improvements up to a maximum government contribution of £5,000.  

If you, or someone in your household receive certain benefits, you may be able to get a voucher worth 100% of the cost of the improvements, up to a maximum value of £10,000.

However, landlords are not eligible for the low income scheme.

The voucher covers the costs of the labour, materials and VAT but the work cannot be completed by yourself, a member of your household or your immediate family. 

If this is something you are interested in, you need to make sure you leave enough time to get a quote, apply to the scheme and get the work completed. 

Martin Lewis explains more about the scheme in this video: https://www.youtube.com/watch?v=lpqRQF0NmrY&feature=emb_title

The Chancellor Rishi Sunak first announced this grant in July with the hope it would upgrade the energy efficiency of homes, support low-carbon heating technology and help reduce the number of people who are unable to heat their homes. 

The government has set aside £2 billion for the Green Homes Grant and hopes it will help pay for improvements in over 600,000 homes across England. 

There are several benefits to making green improvements to your home such as insulation and low-carbon heating systems can help cut energy bills which could save some families up to £600 a year. 

For more information go to Brighton Mortgage Broker – The Finance House

To find out what home improvements are best for your home visit https://www.simpleenergyadvice.org.uk/energy-efficiency/home-improvements

To check if you are eligible for a Green Homes Grant visit the government website: https://www.gov.uk/check-eligible-green-homes-grant

Boris Johnson promises Generation Buy scheme with low deposit mortgages

Millions of people hoping to get onto the housing ladder in the UK may be buying a house quicker than they expect as the Prime Minister announces a brand new scheme. 

Boris Johnson wants to turn ‘Generation Rent’ into ‘Generation Buy’ as he promises to boost the availability of ‘long term’ mortgages for borrowers with a five percent deposit.

This comes after the Prime Minister gave a speech to the virtual Conservative Party stating that around two million people who could afford repayments cannot currently get home loans. 

He said: “We need now to take forward one of the key proposals of our manifesto of 2019: giving young, first time buyers the chance to take out a long term, fixed rate mortgage of up to 95 per cent of the value of the home – vastly reducing the size of the deposit. 

“We believe that this policy could create two million more owner-occupiers – the biggest expansion of home ownership since the 1980s with the Generation Buy scheme.

“We will help turn generation rent into generation buy.”

At the moment there are no further details on how this scheme will work or when it is to be launched, however, experts have said the plan may cost tens of billions of pounds.

Mr Johnson also said that the party needed to ‘fix our broken housing market’ to help young people back onto the property ladder.

Those who want to borrow with only a five percent deposit have been able to do so in recent years. However, since the pandemic, lenders have pulled out of these deals. 

For borrowers who have a 10 percent deposit, there are few lenders and funds are limited.

This means that currently first time buyers are struggling to buy a house without putting down at least a 15 percent deposit. 

First time buyers have also had the hurdle of rising house prices in recent years with prices rising dramatically recently because of pent up demand and the stamp duty holiday.

The criteria of the affordability tests that current borrowers have to go through could potentially be relaxed under the Prime Ministers new plan, however no final plans have been confirmed. 
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Mortgage holidays ends soon and according to the Office for National Statistics (ONS), 11% of the British workforce is currently on partial or full furlough across all sectors.

After Mortgage holidays, a new Job Support Scheme will be available for those who have been furloughed.  As of the 1st November, the scheme will be in place for six months and employers in the UK will be required to decide what happens to their furloughed staff. 

While the government has announced further support after furlough, mortgage holidays will end as of 31st October. Many who have been on furlough, or had a mortgage payment holiday, may see a significant decrease in their income for a further six months – this will become challenging for those needing to keep up with mortgage payments and household bills.

What do you need to do when your mortgage holiday ends?

Unless you have been in touch with your lender, you will be expected to pay your usual monthly payment as of November. It’s vital you get in touch with your mortgage provider as soon as possible to discuss how you will make up the shortfall in the future.

When taking a mortgage payment holiday, you may have already discussed your plans with your advisor, however, if you haven’t, it is recommended you do so as soon as possible to find out your options.

If you can now afford to re-start your mortgage payments, you should do this as soon as you possibly can.

What if you can’t afford to repay your mortgage?

If you have lost your job or been given reduced hours that will interfere with repaying your mortgage, you must provide evidence to your lender.

In the current climate, most lenders are quite understanding and will offer support through this difficult time, this is why it’s important to discuss your situation with them. 

Your mortgage provider will be able to provide you with various options such as; spreading your deferred payments over the outstanding term of your mortgage, increasing the length of your mortgage term or making interest or capital only payments. Lenders may also offer to extend your payment holiday by a further three months. 

Already in arrears?

It might seem daunting to discuss these situations with your lender, but it’s really important to do so. If you have already missed payments and are not able to come to an agreement with your lender, you should consider getting debt advice as soon as possible, particularly if you have other debts as well.

Need further advice?

If you need any further advice regarding your mortgage holiday ending, get in touch with us by either using the form below or click on the banner above to get our contact details. 
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