What is the new Mortgage Guarantee Scheme launched in April 2021 ?
Answer: The Chancellor has announced the launch of a new mortgage guarantee scheme for those homebuyers with small deposits.
Lenders who provide mortgages to homebuyers who can only afford a 5 per cent deposit can take advantage of a government guarantee on those mortgages.
The announcement comes after plans for the mortgage guarantee scheme were revealed by the Treasury over the weekend.
Unlike the present help to buy scheme, this will be available on both second hand and new build homes. The scheme will enable both first-time buyers and homeowners to obtain a mortgage with a 5 per cent deposit on a property of up to £600,000. The guarantee will offer lenders the surety they need to provide mortgages that cover the other 95 per cent. The scheme will be available from April 2021.
Lenders using the scheme can offer mortgages fixed for at least five years which, would provide for borrowers with smaller deposits who want the stability of a fixed rate over a longer-term.
If you have a small deposit and want to be able to take advantage of a 95 per cent mortgage please contact Mortgage Hunters on 01438 359300, email us at info@mortgagehunters.co.uk or visit our website www.mortgagehunters.co.uk.
