New 95% mortgage guarantee scheme launched
Buyers can purchase a home with a deposit of just 5% after the latest government scheme to support homebuyers went live today.
Lenders are offering 95% mortgages to all purchasers for the acquisition of their main home (it is not available for second homes or buy-to-let properties).
The government will provide lenders with the guarantee they need in order to lend up to 95% of the purchase price to the buyer.
The initiative, which was announced in the Budget and will run until December 2022, aims to help first time buyers to get onto the property ladder and existing home-owners to move up as it will apply to properties worth up to £600,000.
Previously, lenders would typically ask for a 15% or 20% deposit.
Lloyds, Santander, HSBC and NatWest have today launched new mortgage products under the scheme, while Virgin Money is expected to follow next month.
The new scheme will see the government underwrite around 15% of the mortgage should the buyer default.
Buyers purchasing a property with Russell Homes will be able to make the move to Stubley Meadows in Littleborough with a deposit of £13,250 for a three-bedroom detached.
For full details check out the government announcement here.
Contact Us for more information by emailing Sales@RussellHomes.co.uk or calling 01706 300 571.
Under the new scheme, buyers could move to Stubley Meadows in Littleborough with a deposit from £13,250.