Government 95% New Mortgage Scheme Designed To Help First Time Buyers & Current Homeowners

Announced yesterday, Head of Residential Property Lisa Collett discusses the Government’s new 95% Mortgage Scheme…..

The new 95% Mortgage Scheme launched on Monday 19 April 2021 and is designed to be part of a range of options to help make home ownership a reality.

What Is the New 95% Mortgage Scheme?

This new government-backed mortgage scheme will help first time buyers or current homeowners secure a mortgage and buy a house up to the value of £600,000.00, with just a 5% deposit.

The scheme was first announced in the budget and is now available from lenders on the high street, across the country.  Under the scheme, the government will offer lenders the guarantee they need to provide mortgages that cover the other 95%, subject to the usual affordability checks. Lloyds, Santander, Barclays, HSBC and NatWest have already launched mortgages under the scheme and many other lenders are expected to follow.

How Does The New 95% Mortgage Scheme Work?

For aspiring home-owners this could provide an affordable route to home ownership as the scheme allows buyers to secure a mortgage with just a 5% deposit to buy a house of up to £600,000.

The government will offer lenders the guarantee they need to provide mortgages that cover the other 95%, subject to the usual affordability checks.

Chancellor of the Exchequer, Rishi Sunak said:

“Every new homeowner and mover supports jobs right across the housing sector, but saving for a big enough deposit can be hard, especially for first time buyers.”

“By giving lenders the option of a government guarantee on 95% mortgages, many more products will become available, boosting the sector, creating new jobs and helping people achieve their dream of owning their own home.”

How Timms Can Help

If you are now considering moving home and would like a conveyancing quote please contact us on 01332 364436, alternatively you can visit our website at https://www.timms-law.com/conveyancing/ for a free no obligation competitive quotation.

If you are a first-time buyer you will surely be excited about the prospect of owning your first home but perhaps a little daunted by what the process will entail.  Hopefully our First Time Buyer Guide will answer some of your questions, alternatively please feel free to give us a call on freephone 0800 011 6666 or via email at legal@timms-law.com.

Lisa Collett
April 2021