The COVID-19 pandemic has led to a reduction in the availability of high loan-to-value (LTV) mortgage products, particularly for prospective homebuyers with only a 5% deposit. This has left many hard-working households unable to get onto the housing ladder. The government has therefore announced a mortgage guarantee scheme to support a new generation in realising the dream of home ownership.
Are you eligible?
The scheme is designed to help creditworthy households struggling to save for the higher mortgage deposits required by lenders in the current environment. For this reason, a mortgage eligible for a guarantee under the scheme will need to:
- be a residential mortgage (not second homes) and not buy-to-let
- be taken out by an individual or individuals rather than an incorporated company
- be on a property in the UK with purchase value of £600,000 or less
- have a loan-to-value of between 91 per cent and 95 per cent
- be originated between the dates specified by the scheme
- be a repayment mortgage and not interest-only and
- meet standard requirements in terms of the assessment of the borrower’s ability to pay the mortgage, for example a loan-to-income and credit score test
Source: The mortgage guarantee scheme outline, gov.uk, March 2021
The scheme is intended as a temporary measure. It will be open for new mortgage applications from April 2021 to December 2022.
Looking for advice?
For more information and advice on which mortgage lenders are taking part in the scheme, speak to our award-winning expert mortgage advisers at Super Contractors. Freephone 0800 211 8700 or fill in our online enquiry form.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
This firm charges a fee of up to £595 for mortgage advice. The fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
Lifetime Finance Group Limited trading as Super Contractors is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority