95% Mortgage Guarantee Scheme
This scheme has been designed similarly to the previous 95% Help to Buy Mortgage Guarantee Scheme which was launched in 2013 and helped over 100,000 households purchase a home.
Under the terms of the new scheme, the government will guarantee the portion of the mortgage over 80% (with a 95% mortgage, the remaining 15%).
Several high street lenders have announced they will be taking part in the new scheme and here at PIA we will be able to guide you to the right lender for your needs. The scheme will launch in April and is expected to be available until December 2022. There will be certain eligibility for the scheme and below is the information we know so far:
- The scheme is applicable for residential mortgages only and is not available for the purchase of second homes or buy-to-let
- Applications need to be taken out by individual(s), not a limited company
- Property must be in the UK with a maximum value of £600,000
- Application loan to value (LTV) must be between 90% and 95%
- Only available on a repayment basis, not interest-only
- Borrowers must meet the lender’s affordability and credit policy
- Products available will be on a long-term fixed basis, minimum product term five years
To find out more, contact one of our advisers, who will be happy to help