In today’s Budget announcement, the Chancellor introduced a new mortgage guarantee scheme running from April 2021 until the 31st December 2022. The scheme will provide government-backed mortgages for those with 5% deposits to buy properties up to a value of £600,000.
This will increase the availability of 95% Loan-to-value mortgage products, enabling more households to access mortgages without the need for prohibitively large deposits.
Prospective homebuyers with smaller deposits will be able to access mortgages provided by lenders under the scheme.
As this scheme intends to remove “significant barriers” for those aiming to get on the property ladder, this scheme is open to all borrowers, not only First-Time Buyers.
As many leading banks are taking part in the scheme, including Lloyds, Natwest, HSBC, Santander and Barclays with others expected to join shortly, it appears that the scheme will be widely available.
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