Apr
9

The return of 95% mortgages

This article by What Mortgage gives a broker’s view on the return of the 95% mortgage following the recent Budget where the government confirmed there would be a new Mortgage Guarantee scheme. It explains the new scheme, expected to be introduced around 19 April, will be similar to the Help to Buy scheme. It will give lenders protection when lending against 95% of the property value. In March 2020 there were 391 offers available for those with a 5% deposit; this dropped dramatically during the pandemic. Following the Budget announcement last month, six lenders have now re-introduced 5% deposit offers (albeit with certain criteria), bringing the current total to 29. Whilst this is still a long way off the number of offers available pre-pandemic, hopefully, the new scheme will see this number increase over the coming months. Read the article here.