Government Announces 5% Mortgage Guarantee Scheme

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March 1, 2021

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How do you buy a new home if you don’t have a large deposit. We all know that low deposit mortgages are very hard to find if available at all.

How about a mortgage with just 5% deposit.

It’s no secret that you need quite a bit of a deposit if you want to buy a house. Help to Buy could be a solution if you want to buy new build and are a first time buyer but what if you are not a first time buyer, or you just don’t fancy a new build house as your next home.  Currently, that leaves you with one main option.  Save 10% of the property value which for some could be out of reach.

The chancellor has hinted towards a new government guarantee scheme to provide mortgage lenders with some comfort to offer mortgages with just a 5% deposit.  This sounds like a great way to allow thousands of people move home or buy their first home.

We are not sure of the full scheme details or which lenders may take this scheme up.  I can imagine it might not be everyone to start with as lenders may struggle with business levels and because of this I can imagine that rates won’t be great to start with.  but, if it is better than renting then it’s a good thing.

If you want to know more about the 5% deposit scheme as soon as it is released then sign up to our wait list.

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