Buyer’s Aid tenants facing large bills to replace unsafe siding will not benefit from an extension of the interest-free period on their government-guaranteed loans, the housing minister said.
Buyer’s Aid tenants facing large bills to replace unsafe coating will not benefit from an extension of the interest-free period on their government-guaranteed loans, Housing Minister #UKhousing said
Responding to a written parliamentary question, Christopher Pincher said: “There are no plans to extend the interest-free period of purchase assistance loans.
The program, launched in 2013, allows first-time buyers to buy a house with a down payment of only 5% as well as a public loan of up to 20% (40% in London).
According to the terms of the program, the first five years of the loan are interest free and from the sixth year borrowers must start paying a monthly interest charge of 1.75%, increasing according to the retail price index. (RPI) plus 1% each year.
Mr Pincher added: ‘The government will provide grants worth over £ 5 billion for the removal of hazardous coatings from buildings over 18m.
“Low-rise buildings between 11m and 18m that pose a lower safety risk will benefit from further protection against the costs of siding removal through a new generous funding program. The government is aware of the need to make any financing system affordable for tenants.
Last month, the government announced an extension of the two-month completion deadline until May 31.