Perhaps you never even heard of the Help-to-Buy Government scheme, it does not matter either way as it ended in October 2022. It was all doom and gloom again on the housing front for time buyers as there is no scheme to replace the scheme…. However, there are good schemes out there, and unless you are in the know-how getting snippets in the media of people trying to get on the housing ladder and failing can be somewhat discouraging. So, here’s a little something to whet your appetite…
The 95% of mortgage deals in the content below include the government’s Mortgage Guarantee Scheme.
The 95% mortgage scheme is designed to help those with a small deposit to get on the property ladder. They are known as 95% loan-to-value (LTV) mortgages.
Meaning the ratio of a home loan (mortgage) relative to the value of the property purchase price. For example, a mortgage worth £190,000 on a £200,000 property has a 95% LTV.
In this example, you would need to make up a deposit based on the loan value and purchase price with a 5% deposit from your piggy bank (or with family/friends) of £10,000 in this case.
The government launched an initiative in April 2021 called the Mortgage Guarantee Scheme.
Under the scheme, buyers can borrow between 91% and 95% of the property value, by putting down a deposit of between 9% and 5%.
The government provides a guarantee to mortgage lenders (worth up to 14.5% of the loan) to encourage them to offer high loan-to-value (LTV) mortgages.
This just gives you a brief gist of how it works, but for a detailed explanation, and to see if you qualify why not just reach out? Our advice is free.
Article written: January 17th, 2023
Please be aware the details of this article are appropriate from the time it was written, therefore any information given after this date may have changed.
Be aware that if you are unable to keep up your mortgage repayments you may lose your home. We are professional mortgage brokers with a joint knowledge of 75 years. Our advice is free, so if you have any mortgage-related questions feel free to drop us a line at: firstname.lastname@example.org