What you need to know about the 95% mortgage guarantee scheme
A new mortgage guarantee scheme was announced this spring, with the goal being to help first-time buyers and aspiring home movers purchase a home with a smaller deposit.
The initiative, which will be available for new mortgages up to 31st December 2022, is intended to increase the availability of mortgages on new or existing properties for those with small deposits.
This comes after a plummet in 95% mortgages made available last year, as lenders lost confidence in the UK’s financial stability due to the pandemic.
How will it work?
It is based on the Help to Buy mortgage guarantee scheme that ran from October 2013 to December 2016, which backed mortgages for 104,736 purchases – 2.7% of all those in the UK.
The average property bought through the scheme was worth £159,170, compared to an average UK house price of £223,000.
In terms of restrictions with the latest initiative, only first-time buyers or those moving homes are eligible to apply, not those wishing to buy second homes or buy-to-let properties.
First-time buyers and home-movers form a vital cog in the economy and housing market, so government support will play a crucial role in restoring the balance.
To get assistance on your mortgage needs, get in touch today, or browse our latest properties to see what’s available in your area.
This article was originally published by BriefYourMarket and is reproduced here with their permission.
For more company news and insights from Pygott & Crone, click here
Latest news
The Renters' Rights Act: What landlords need to know now
The Renters' Rights Act: What landlords need to know nowThe Renters' Rights Act 2025 came into force on 1 May 2026, bringing the most significant overhaul of private rented sector legislation in England in more than thirty years.
What's my home really worth? Understanding property valuations
What's my home really worth? Understanding property valuationsBefore you market a property for sale, understanding its value in the current market is the most important preparation you can make.
Void periods explained: How to minimise empty rental months
Void periods explained: How to minimise empty rental monthsA void period is the time between one tenancy ending and the next beginning, during which the property generates no income.
Breaking down the property chain: How it really works
Breaking down the property chain: How it really worksWhen you buy or sell a home in the UK, you are likely to hear the phrase property chain.
