08 Mar 2021
The Mortgage Guarantee Scheme
Announced in last week’s budget was the re-introduction of the Help to Buy Mortgage Guarantee Scheme, which is effectively the Government supporting lenders to get back to offering 95% mortgages.
To be clear, this scheme doesn’t offer any loan or financial support to first-time buyers. The mortgage guarantee is offered to the lenders to give them the confidence to start lending at such a high loan to value once more, enabling those first-time buyers who are mid-way saving for their 10% deposit to buy now.
This move will see a raft of new buyers come into the market which was proven after this scheme was first introduced in October 2013. This forms part of Boris’s plan to turn Generation Rent into Generation Buy. Santander announced they would be looking to support and are currently looking into a product offering. It is also likely we will see products being offered by the likes of Natwest and Halifax. More information to come on this in the next couple of weeks.
A few key points worth knowing about the scheme:
- *Available to both first-time buyers AND home movers.
- *Accepted on properties at a maximum purchase price of £600,000.
- *The amount you can borrow is calculated on a maximum of 4.5 x your sole joint income.
- *Scheme available at least until December 2022.
- *Available on a capital and interest repayment mortgage basis only.
Our friendly team will help and guide you through the entire process, from your first call, right up until you get your keys to your dream home.