The Government has launched a new 95 per cent mortgage scheme this week, designed to help first-time buyers or current homeowners secure a mortgage with just a 5 per cent deposit, with the Government offering lenders the guarantee they need to provide mortgages that cover the other 95 per cent.
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.
Since 2010, more than 687,000 households have been helped into homeownership through government schemes, including Help to Buy, Shared Ownership and the First Homes Scheme.
But when asked, 69 per cent of private renters and 63 per cent of those living at home who had looked into a mortgage said they couldn't find many with a low deposit. So this new scheme will be vital in making homeownership more accessible.
As part of the Government’s Plan for Jobs, the scheme will also help to support the housing market and protect jobs and businesses across the housing supply chain, from housebuilders and estate agents, to tradespeople, DIY stores and removal firms.
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