A new 95% mortgage could help you secure your dream property, the Government has announced.
The scheme, available to both new and existing buyers, forms part of a nationwide campaign to help people get on or climb up the housing ladder.
According to the scheme details, the initiative will help first-time buyers or current homeowners secure a mortgage with just a five% deposit to buy a house of up to £600,000.
Unlike existing schemes, the Government will “offer lenders the guarantee they need” to provide mortgages that cover the remaining 95%.
Lloyds, Santander, Barclays, HSBC, and NatWest are among the first set of lenders to register with the scheme, with Virgin Money to follow next month.
Welcoming the scheme, Miguel Sard, Managing Director of Home Buying and Ownership at NatWest said: “We welcome the government’s new mortgage guarantee scheme to give further support to those with smaller deposits.’’
“For those customers, particularly younger or first-time buyers, saving up for a big deposit can often be difficult, and we know people in these groups are some of the hardest hit by the effects of the pandemic.”
Mark Hayward, Chief Policy Advisor at Propertymark, added: “Over the past few months, there has been an increase in the number of prospective buyers and the number of house sales taking place. Coupled with the decision to extend the Stamp Duty holiday further, the Mortgage Guarantee Scheme will provide additional options for more people to become homeowners.”
The scheme is now open for new mortgage applications from April 2021 to December 2022.
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