A new mortgage scheme aimed at helping people with a 5% deposit get a foot on the housing ladder launched on 19 April.
The government-backed scheme was first announced in the budget on 3 March and applies to first-time buyers and home movers purchasing properties costing up to £600,000.
The mortgages are now available from the high street lenders Lloyds, Santander, Barclays, HSBC and NatWest with loans from Virgin Money launching next month.
The scheme works by offering lenders a government guarantee for the 95% loan, giving them the confidence to grant mortgages, subject to the usual affordability checks.
Government figures show increased desire for home ownership, with more than two-thirds of private renters (68%) and those living at home (72%) expressing a wish to buy. However, there has been a sharp reduction in 95% mortgage availability during the coronavirus pandemic.
Housing Secretary, Robert Jenrick said: “For too many people, no matter how hard they work, home ownership can seem out of reach. One of the biggest divides in our country has been between those who can afford their own home and those who cannot.
“The new mortgage guarantee scheme will give providers the confidence to lend and help families and young people get on the property ladder without the prohibitive burden of a large deposit.”
Miguel Sard, Managing Director of Home Buying and Ownership at NatWest added: “For those customers, particularly younger or first-time buyers, saving up for a big deposit can often be difficult, and we know people in these groups are some of the hardest hit by the effects of the pandemic. A government-backed scheme will help segments of the market for whom home ownership has felt far out of reach in recent months.”
Kubie Gold Associates are an independent local firm of estate agents specialising in the Rental, Sale and Property Management of Residential Property in the North-West and Central London market
