95% MORTGAGES FOR FIRST-TIME BUYERS...
Looking to get on the property ladder? Extra support for first-time buyers.
A new government-backed mortgage scheme will help first-time buyers or current homeowners secure a mortgage with just a 5% deposit. It launched today (19 April 2021).
The Government statement reads. First announced at the Budget, 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 – providing an affordable route to homeownership for aspiring homeowners.
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 across the country.
Tom Dennis, our Independent Financial Adviser, explains, "Lenders will offer various products with different borrowing criteria. Therefore, please book an appointment with a Financial Adviser with an office around the Robinson Jackson Group. This can be conducted in person, over the phone or video. We will be able to establish if you qualify, then guide you through the process.”
When conducting your research, you might see 95% mortgages described as having a '95% LTV'. This stands for loan-to-value and means the percentage of the property's value covered by the mortgage. So for example;
If you have saved £10,000, this would be a 5% deposit for a £200,000 home. You'll then need to be able to borrow the remaining £190,000 on a mortgage either on your own or jointly with a partner, friend or family member. In order to borrow £190,000, you'd need a combined overall income of at least £42,500 based on the lenders available. Income can be made up of varied types of income, e.g. basic, overtime, benefits and more.
Outside of the Government’s mortgage scheme, other initiatives are available for first-time buyers, such as Shared Ownership and Help to Buy. Plus, you may be able to benefit from the concessions offered during the Stamp Duty holiday.
For information, contact us today.
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