×

Property News: New 95% Mortgage Scheme Launches

new 95% mortgage scheme launches

What is the new 95% mortgage scheme?

The new government-backed mortgage scheme will help first time buyers or existing homeowners secure a mortgage with just a 5% deposit. It is available for all homes for sale under £600,000, helping those aspiring homeowners finally get onto the property ladder.

The new scheme comes as figures have shown a huge demand for homeownership during lockdown, with nearly 80% of private renters now saving for a deposit.

Government Ministers say it will provide an affordable route to homeownership, with Lloyds, Santander, Barclays, HSBC and NatWest launching mortgages under the scheme.

Want to see if you’re eligible for the 95% mortgage scheme? Speak with one of our financial advisors here.

website-banner-book-a-virtual-val-2

What the experts say

Housing Secretary Rt Hon Robert Jenrick MP said:

“The new mortgage guarantee scheme will give providers the confidence to lend and help families and young people get on the property ladder without the prohibitive burden of a large deposit.

In recent years we’ve reversed the trend and seen a positive increase in owner-occupiers. We’re determined to build on this through the range of flexible ownership options which help ensure homeownership is achievable. We want to match the ambitions of aspiring homeowners up and down the country.

Together we can turn ‘Generation Rent’ into ‘Generation Buy”.

Chancellor of the Exchequer, Rishi Sunak stated:

“By giving lenders the option of a government guarantee on 95% mortgages, many more products will become available, boosting the sector, creating new jobs and helping people achieve their dream of owning their own home”.

Rightmove’s Director of Property Data Tim Bannister says:

“The new mortgage scheme could help some first-time buyers bring their plans forward if they have a lower deposit but are still able to pass the affordability checks and will be welcomed by those who last year we’re struggling to come up with a 15 or 20% deposit.”

website-banner-get-a-free-online

Related Post

Updates: 2 Mins Read

Stamp Duty Holiday – What Do I Need To Know?

Did you know? The stamp duty holiday is still available until 1st October 2021 on properties below £250,000… this could save you

Updates: 2 Mins Read

Record Number Of Homes Sell Above Asking Price

According to the most recent market snapshot from NAEA Propertymark one in three properties sold for than asking price last month –

Updates: 2 Mins Read

Is Spring The Best Time To Sell Your Home?

Putting your home on the market is a big decision, so it’s important to make sure that you’re doing it at the