During the Spring 2021 Budget on 3rd March 2021, Chancellor Rishi Sunak announced the new 95% mortgage scheme will be introduced to allow more first-time buyers to get on the property ladder with a deposit as little as 5%.
In his speech, Sunak said: “It is a policy that gives people who can’t afford a big deposit the chance to buy their own home.” This will make a substantial difference particularly to those living in more expensive areas, such as London. For those in the capital, it is notoriously difficult to get on the property ladder as price houses are so high.”
The aim is to support home ownership and make mortgages more accessible for buyers struggling to meet strict criteria from lenders, especially those who are first time buyers. Prime Minister, Boris Johnson, declared he wants to ‘turn Generation Rent into Generation Buy’.
The new scheme will enable mortgage lenders to offer loans of up to 95% to properties up to the value of £600,000, excluding second homes and buy-to-lets. Big lenders such as Natwest, Santander, HSBC and Barclays have agreed to provide the mortgages. The mortgages are available from April 2021, until December 31st 2022.
The new mortgage announcement coincides with the extension of the stamp duty extension until 30th June 2021. Buyers across the UK will be grateful for this extra help to get onto the property ladder, and we’re sure it will continue to strengthen the UK property market.
If you’re looking to make the move and want to make the most of the 95% mortgage scheme, view our selection of properties under £600k or contact us on 0800 862 0870 to speak to one of our expert agents