5% Mortgage Deposits
The news broke at the start of this week that High Street lenders are now starting to offer mortgages to borrowers offering just a 5% deposit under a new government scheme. This is in the hope to help first time buyers get on the property ladder and add a boost to the UK housing market and the economy. This is great news for people hoping to make home ownership a reality.
For anyone hoping to buy a home up to £600,000, the scheme will be available to them, providing they are not buy-to-let properties or second homes. To support this, the government is offering a partial guarantee (generally 15%) to compensate lenders if the borrower defaults on repayments.
High Street lenders paused similar schemes when the covid pandemic hit, but companies such as Lloyds, Santander, Barclays, HSBC and NatWest have re-started their offers, with Virgin Money joining next month. Some companies however, are not offering the 5% deposit for new-build properties.
Chancellor Rishi Sunak said: “Every new homeowner and mover supports jobs right across the housing sector, but saving for a big enough deposit can be hard, especially for first-time buyers. “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.”
Taken from the government website, they state: “Since 2010, more than 687,000 households have been helped into home ownership through government schemes, but when asked, 69% of private renters and 63% of those living at home who had looked into a mortgage said they cannot find many mortgages with a low deposit.” This new scheme will provide hope for those looking to own their own home.
Here at Key Executive Sales, we have plenty of properties suitable for first time buyers which would work hand-in-hand with the 5% mortgage deposit.
For more information, please do feel free to contact us on the following:
02920 489 000
Published: April 20, 2021BACK TO NEWS LIST