95% Mortgages – what does it mean for you?

A government backed 95% mortgage scheme was announced in the Budget in March, which will now allow those who haven’t been able to save a 10% deposit to take their first step on the property ladder.

What is a 95% mortgage?

Simply put a 95% mortgage is a type of mortgage that will allow you to borrow 95% of the property price from a lender. The remaining 5% is paid by you.

Who can benefit?

All homebuyers are eligible for the scheme, not just first-time buyers. 

The scheme is also not restricted to new-build properties.

Are there any restrictions?

The scheme does come with some restrictions. Only properties worth up to £600,000 can be bought with a 5% despot and you will still have to pass the lender’s usual criteria to be offered a loan.

When will it launch?

There are currently limited mortgages available for those with less than a 10% deposit which is way the government will be introducing this new scheme.

The government mortgage guarantee scheme will launch in April 2021.

What are my next steps?

Get in touch with one of our Mortgage Advisers to find out whether a 95% mortgage is right for you. Our Advisers will be able to advise on your specific situation and finances and recommend the best product for you.

For more information about our Mortgage Advisers see here.