Joy for first-time buyers as 5% deposit mortgages return
The new government-backed mortgage scheme will help first time buyers - Credit: Getty Images/iStockphoto
Mortgages requiring just a 5% deposit have been reintroduced - in what is set to be a boost for first-time buyers trying to get onto the property ladder.
The average price tag on a home in the country has jumped by nearly £7,000 in the space of the month.
That has pushed average seller asking prices to a new record high of £327,797 in April, according to property website Rightmove.
But chancellor Rishi Sunak has revealed there will be a new mortgage guarantee scheme starting this month.
While the pandemic has given some first-time buyers time to save up cash, many have been unable to climb on the property ladder without finding at least a 10% deposit.
Now, this new scheme will provide a guarantee to lenders who offer mortgages to people with a deposit of just 5% on homes valued up to £600,000.
Buyers will also be able to fix their initial mortgage rate for at least five years if they want.
Most Read
- 1 Suspected drug dealer arrested after £2,000 worth of cannabis found
- 2 Person trapped in car after two vehicle crash near Sudbury
- 3 Belle Vue Park plans deferred following legal issue
- 4 How to see the last supermoon of the year this weekend
- 5 Police attending 'incident' near town centre
- 6 Belle Vue Park entrance plans backed by councillors
- 7 'Save water' Suffolk households urged as hosepipe bans imposed elsewhere
- 8 Thefts 'absolute priority' for Suffolk police after damning national report
- 9 Mobile library services suspended during heatwave
- 10 5 cheap and free things to do in Suffolk this weekend
The scheme will be available for new mortgages up to December 31, 2022.
