5% Deposit Mortgage Guarantee Scheme
Home buyers might be one step closer to reaching their goals of owning their own home with the latest 5 % LTV news.
“Owning a home can be a dream for millions across the world. And there is no reason to say why it shouldn’t be the same for many UK citizens.”
The Big news
The chancellor, Rishi Sunak, has given us a hint of what’s to be unveiled in his budget in a Commons speech on Wednesday, highlighting the mortgage guarantee scheme. He’s expressed his views stating that he plans to incentivize lenders to provide mortgages to first-time buyers and current homeowners, with 5 percent deposits to buy properties worth up to £600,000. He also stated that he would do whatever it takes to protect the British people through this crisis and that he remains committed to that.
Although the idea hasn’t been initiated yet, it is believed that this will be great news for bringing first-time buyers that little bit closer to owning their first property.
Boris Johnson, also sharing his views, stated that he wants the “generation rent” to become a “generation buy”, and these 95 percent mortgage guarantees will help to deliver that promise. He also added saying “Young people shouldn’t feel excluded from the chance of owning their own home and now it will be easier than ever to get onto the property ladder.”
Property market impact
The news about 95 % mortgage guarantee will drop a stone into the property market pond. This has left food for thought for tenants, that this could be their big opportunity to go for a purchase. However, we do have to believe that the mortgage rates will be high for 5% deposit products.
The pandemic has led almost everyone around the world to face the realities of home, work, and working from home experience and on Wednesday, many UK citizens will be watching, praying, and looking up to Mr. Sunak to save their jobs and keep a roof over their heads – whether they own it or not.
From the lender’s point of view, in order to provide the 95%, the treasury has stated that the government will be offering incentives to them.
Therefore, if and when this scheme which is planned to launch across the United Kingdom in April is initiated, it will help to make many people’s dream of owning their special place a reality!
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.