How to get a 95% mortgage: The new Government 5% deposit scheme explained, and full list of banks
1 min read
A new Government-backed scheme has launched today that will allow people to apply for a 95 per cent mortgage, with a deposit of just 5 per cent. How does it work? From today, first-time buyers or current homeowners will be able to apply for a 95 per cent mortgage on properties that cost up to…
A new Government-backed scheme has launched today that will allow people to apply for a 95 per cent mortgage, with a deposit of just 5 per cent.
How does it work?
From today, first-time buyers or current homeowners will be able to apply for a 95 per cent mortgage on properties that cost up to £600,000, with as little as a 5 per cent deposit, subject to usual affordability checks.
It aims to help provide an affordable route to homeownership by supporting people hwo are trying to save for a large deposit and giving lenders the guarantee they need to provide the mortgages.
The Government will give lenders the option to purchase a guarantee on the top-slice of the mortgage, which means it will compensate them for a portion of the net losses suffered in the event of repossession.
The guarantee will apply down to 80 per cent of the purchase value of the guaranteed property.
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