A new government-backed mortgage scheme has now been launched to help home buyers with a 5% deposit get on the housing ladder.
This new scheme is available to first time buyers and current homeowners, enabling them to secure a mortgage with a 5% deposit on a house up to the value of £600,000. This scheme is available to new builds and second hand properties.
How does it work?
Under this new scheme, the government guarantees the last proportion of the mortgage over 80%. Meaning on a 95% mortgage, the government guarantees the last 15% of the mortgage meaning they will compensate your lender should the mortgage fall into arrears. This new scheme is open until December 2022.
Second homes or buy-to-lets are not available to this scheme. This is for a repayment mortgage only.
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