The UK government’s goal to turn ‘generation rent’ into ‘generation buy’ has progressed with the return of 95% mortgages, which will allow aspiring homeowners to step onto the property ladder sooner.
The initiative — announced by Chancellor Rishi Sunak in the 2021 Budget — aims to encourage banks and building societies to grant mortgages to lenders with just 5% deposits, on properties worth up to £600,000.
Open for new applications from April, the scheme will run until December 2022 and apply to both first-time buyers and existing homeowners.
Many of the UK’s leading lenders, including Lloyds, NatWest, Santander, Barclays, and HSBC have opted in, with a guarantee that the government will cover outstanding loans should the buyer default on payments and there’s insufficient equity to pay off the debt.
All hopeful borrowers will still need to pass the regular credit checks and meet all standard rules on affordability.
For further advice about how the 95% mortgage can help you, please get in touch with one of the Applegate team. As always, we are deeply committed to providing a smooth stress-free experience for each of our customers and would be happy to help with any queries.