95% Government Backed Mortgage Scheme
Many potential homebuyers will be able to benefit from the introduction of the brand-new low-deposit mortgage scheme in the coming months.
The Chancellor, Rishi Sunak, repeated the Prime Minister's promise to turn "generation rent" into "generation buy" during his Spring Budget address. He proposed a new 5% deposit mortgage programme in his speech to Parliament. Loans for 95% of the purchase price will be guaranteed by the Government, on properties up to the value of £600,000.
Both first-time buyers and current homeowners will be able to take advantage of these new mortgage items. These loans will not be limited to new build homes, unlike the similar Help to Buy scheme, and indeed banks will not lend against newly constructed homes under the new programme.
Mr. Sunak announced that HSBC, NatWest, and Barclays would be among the first to launch their products, with more to follow. The programme will run from April to December 2022, and it is expected to prevent some of the fallout when the stamp duty holiday ends.
Despite the fact that the new scheme is still in the early stages of development, other 95 percent deals have proven to be incredibly successful in recent months.
Getting on the property ladder, particularly for first-time buyers, often depends on saving for a deposit. The Government-guaranteed five-percent deposit mortgages would help those trying to get on the property ladder the most and if you’d like more information, just get in touch and let’s see if I can help you…