Mortgage Guarantee Scheme: Everything You Need to Know

The mortgage guarantee scheme is a government initiative to help homebuyers with small deposits to get on – or up – the property ladder.

The new scheme, launched in April 2021, is designed to encourage lenders to offer 95% loan to value (ltv) mortgages for properties worth up to £600,000.

In this article, we explain:

How the scheme works and who it is for

Which banks and building societies are taking part

What rates you can expect

What is the new mortgage guarantee scheme?

As a result of the coronavirus pandemic, almost all the 95% ltv mortgages – seen as very risky loans by banks and building societies – were pulled from the market.

First-time buyers, without the Bank of Mum and Dad to tap into, have particularly struggled.

The new mortgage guarantee scheme, launched on 19 April 2021, will allow homebuyers with only a 5% deposit to buy a house up to the value of £600,000.

READ:  ForeMedia Review | Is it Legit or Scam? Best AdSense Alternative

Leave a Comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.