The new Government 95% mortgage scheme launched on Monday has certainly got people talking. But what does it mean?
New Government Scheme Helps First Time Buyers
The new scheme has been introduced to give both first-time buyers and current homeowners the chance to secure a new home up to the value of £600,000 with just a 5% deposit of the property purchase price. The government will underwrite the other 95% via accredited lenders, subject to the usual affordability checks to prove you can comfortably afford the monthly repayments.
The scheme is now available from lenders across the UK, with Lloyds, Santander, Barclays, HSBC and NatWest launching mortgage products under the scheme this week, with Virgin Money set to follow suit next month.
It is hoped it will make owning a new home even more accessible for first-time buyers who also have the option of the Help to Buy scheme, renewed this month.
So, if Help to Buy isn’t for you, but you’re keen to get on the property ladder, you now have another option to help you purchase your dream new home…
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