by Sam Fox www.warringtonmortgagecentre.co.uk
THE government has announced a new mortgage guarantee scheme to support people in realising the dream of homeownership.
This will increase the availability of 95% mortgage products, enabling more households to access mortgages with just a 5% deposit.
Who can access the mortgage guarantee scheme?
The scheme is available to all home buyers, not just First Time Buyers. It will only be available on properties worth up to £600,000.
When is the government scheme available?
The scheme is intended as a temporary measure. It will be open for new mortgage applications from April 2021 to December 2022. However, the government scheme isn’t the only opportunity you will have to access a 5% deposit.
What other 95% products are there?
Accord Mortgages Limited have recently released a new 95% mortgage product, but this one is for First Time Buyers only.
Bank of Ireland has also reintroduced a 95% mortgage which is available to First Time Buyers, homemovers, self-employed and employed across the whole of the UK including Northern Ireland.
Skipton Building Society is now offering 95% Loan to Value (LTV) products exclusive to First Time buyers and also available on shared ownership properties
And – we’re hearing more lenders are now gearing up to launch product in the first week of April – Such as TSB & Aldermore Bank.
What’s our opinion on 95% mortgages?
We think it’s a great way to help people get onto the property ladder without having to save for a big deposit. This doesn’t mean to say there aren’t a few things to consider, such as the potential of the borrower falling into negative equity if house prices fall significantly. It really depends on your personal circumstances – which is why it’s so important to seek mortgage advice from experts such as ourselves.
Our quick-fire tips to get ready for a mortgage application
– Know your budget and affordability
– Check your credit report
– Prepare the documents you will need such as your last 3 months’ bank statements and payslips
– Speak to a mortgage advisor such as ourselves to help you meet the specific requirements of the lender
I want to find out more, who do I speak to?
Mortgage advice is what we do best! We’re a locally-based business with a team of experts on-hand ready to answer any questions or help you take the next step towards homeownership.
Give us a call on 01925 573328 or email firstname.lastname@example.org to get in touch.
Your property may be repossessed if you do not keep up with your repayments.