95% Mortgages, get in fast!
Updated: Mar 8
A new mortgage guarantee scheme to help people with small deposits as low as 5% get on the property ladder has been announced in todays budget and is a welcome sight to all those that have been waiting to move.
The government will offer incentives to lenders, bringing back 95% mortgages which have all but diminished over the last year.
This is great news for anyone trying to get on to the property ladder for the first time.
The new scheme is not restricted to first-time buyers or new-build homes, but there will be a £600,000 limit.
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Boris Johnson said he wants "generation rent" to become "generation buy".
The prime minister added: "Young people shouldn't feel excluded from the chance of owning their own home and now it will be easier than ever to get onto the property ladder."
Chancellor Rishi Sunak "Owning a home is a dream for millions and we want to help as many people as possible."
The coronavirus pandemic has meant there are few low-deposit mortgages available, the Treasury said, with just eight on the market in January.
Low-deposit mortgages are often seen as riskier by banks as they are more vulnerable to negative changes in property prices - meaning people hold more debt than their home is worth.
Under the new scheme, which will launch across the UK in April, the government will offer to take on some of this risk.
Lenders will be given the option to purchase a government guarantee that will compensate them for a portion of their losses in the event a buyer cannot keep up with mortgage payments.
Mortgages with fixed rates for at least five years will also be offered.
Get in touch with us today by filling in this quick form and make sure you are ready to take advantage of this scheme.