A new government-backed mortgage scheme to help people with 5% deposits get on to the housing ladder is now available.
The scheme will help first time buyers or current homeowners 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.
The scheme is now available from lenders on high streets across the country, with Lloyds, Santander, Barclays, HSBC and NatWest launching mortgages under the scheme today and Virgin Money following next month.
Your Linear Mortgage Adviser will be able to help you find the right mortgage for your circumstances. It is advisable that you seek the help of an independent mortgage adviser to help you through the process.
Housing Secretary Rt Hon Robert Jenrick MP said: “For too many people, no matter how hard they work, home ownership can seem out of reach. One of the biggest divides in our country has been between those who can afford their own home and those who cannot.
“That’s why we are determined to do everything we can to help hard-working families and prospective first-time buyers get their feet on the housing ladder in an easy and affordable way, to level up this country.
“The new mortgage guarantee scheme which has come into effect will give providers the confidence to lend and help families and young people get on the property ladder without the prohibitive burden of a large deposit.
“Together we can turn ‘Generation Rent’ into ‘Generation Buy’.”
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.”