New 95% mortgage scheme launches
1 minute read
In measures to support First Time Buyers and current homeowners, the Government have launched a 95% mortgage guarantee scheme meaning buyers’ will only need to pay a 5% deposit on their new home. The scheme is valid on properties up to the value of £600,000 and runs from April this year and ends in December 2022. Applicant’s credit history will still be taken into account and usual affordability and standard criteria still apply.
The scheme is available from a wide variety of lenders, with the Government providing a guarantee to the lenders to cover some of their losses in the event of repossession. Low deposit loans have recently been in short supply, but demand is expected to reach around 3,000 applications per month.
This scheme is just one of a range of home ownership options currently available to buyers. Available schemes include the popular Help to Buy shared equity scheme which is now restricted to First Time Buyers of brand new properties, and the Shared Ownership scheme.
For more information or to find out about the best mortgage funding options for you, give Just Mortgage Brokers a call today – our mortgage advisers will be happy to help.