The UK Government announced in the latest Budget that it would introduce a Mortgage Guarantee scheme to help borrowers with a low deposit( 5%) access to Mortgages through selected lenders up to 95% borrowing. Below I have listed how the scheme works and outlined the requirements for the scheme..The scheme is now live and open for applications….
What is the Government 95% Mortgage Scheme.
The Government were worried that many households and borrowers with good credit history would be unable to get a Mortgage without a large deposit due to the impact of Covid-19. So in the March 21 budget they announced a new high loan to value Mortgage Guarantee scheme for lenders.
It is important to understand the “guarantee” element is for lenders. It does not mean the Government will guarantee to pay your Mortgage! What the Government have done is provide the lenders with a safety net or guarantee against the risk of providing 95% Mortgages.
Who Can Apply for the 95% Mortgage Scheme?
The new scheme is available to both First Time Buyers and Home movers. The property you buy must be your main residence, it is not available for second home or buy to let Mortgages.
The purchase price cannot exceed £600,000 and you must be able to provide a deposit of between 5-9%
How Do I Apply for the 95% Mortgage Guarantee Scheme?
Simply get in touch and I can look at options for you and let you know if you are eligible for the scheme and what kind of rates are available. I can also answer any questions you may have. There are only a selected number if lenders that will be offering the scheme. At Mortgage Advisor Glasgow we have access to all,the lenders participating in the scheme. This will give you a choice of rates and deals by using us to help you with your application.
Summary.
In summary the 95% Mortgage Scheme offers those borrowers both First Time Buyers and Home Movers the opportunity to purchase a home with a low deposit. By getting advice from a good Mortgage Broker, you can access all,the lenders using the scheme and find the right deal based on your circumstances and requirements.
Give us a call on the number above now or use the Call Me Back button to the right of the page and I will call you back at no cost to discuss your needs and answer any questions you may have..
Michael Markey CeMap,CeRER
