During last week’s budget, Chancellor Rishi Sunak announced the government will be introducing 95% mortgages from next month. The move will allow first time buyers and home movers to purchase a property with a 5% deposit.
Last year Boris Johnson pledged to ‘turn generation rent into generation buy’. The new scheme will enable mortgage lenders to loan up to 95% of the value of a property. Coupled with the Stamp Duty holiday, the 95% mortgages will make moving house even more affordable for buyers and sellers across the UK.
The 95% mortgages will be available from April 2021 until 31st December 2022 and will be limited to homes up to the price of £600,000.
How does a 95% mortgage work?
A mortgage lender will loan the buyer up to 95% of the property value. The buyer will need to save the remaining 5% to put down as a deposit on the home. For example, if the property is £150,000, the mortgage lender will loan up to £142,500, with the buyer putting down £7,500 as a deposit.
Can I still buy a house using a 10% deposit?
Yes! If you can afford to put down a bigger deposit for the property, then you still can. 95% mortgages are another option to help first time buyers and home movers access the property ladder. Mortgage lenders offer a range of mortgage products – speak to The Mortgage Genie for more information and advice.
It’s a great time to move. If you buy or sell a property with us, we’re offering you even more savings with 20% off conveyancing fees* with our sister company Emsleys Solicitors. Contact our team today to book your free professional valuation.Back to Blog