New government-backed 95% mortgage guarantee scheme launches today!!!

A number of lenders have launched their new 95% loan-to-value deals today with help from the government’s mortgage guarantee scheme.

The initiative, which aims to help those with lower deposits onto the housing ladder by offering incentives to lenders in order to provide 95% LTV mortgages, many of which were removed from the market as a result of the pandemic, should boost demand for property; good news for estate agents.

The mortgage guarantee scheme will allow buyers to acquire properties valued up to £600,000 with a 5% deposit, but unlike the Help to Buy scheme, it will not be restricted to first-time buyers or specific property types, with existing homeowners able to reap the benefits.

The chancellor Rishi Sunak has described the scheme as “a policy that gives people who can’t afford a big deposit the chance to buy their own home”.

Many of the UK’s largest lenders will start offering mortgages within the scheme, including Barclays, HSBC, Santander, NatWest and Lloyds.

Richard Donnell, director of research and insight at Zoopla, said: “Supporting buyers with small deposits is key to widening access to home ownership for a part of the mortgage market that has been under-served. It is not a mass market solution and it’s vital we have a competitive market for lending up to 90% LTV  for a healthy housing market.

“Greater availability of 95% mortgages will have the greatest benefits for buyers in lower value housing markets in northern England and Scotland.

To find out how a 95% mortgage could help you contacts us here  https://www.247propertyservices.co.uk/contact-us/