It has been announced that big lenders are now starting to offer
mortgages to borrowers offering a deposit of just 5%, under the new
government guarantee scheme.
This policy is aimed at aiding more first-time buyers in
securing a home. Furthermore, analysts have also suggested cheaper
deals are available for those able to stretch to a 10% deposit.
The scheme is said to be similar to previous policies used to
boost the economy and housing market; in return it will be offering
support to those buying a property for the first time.
The guarantee has been designed to give lenders confidence to
offer 95% loan-to- value mortgages, many of which were withdrawn
during the pandemic.
Lenders such as Lloyds, Santander, Barclays, HSBC, and NatWest
are reportedly starting to offer products. However, Halifax and
Barclays have said that the products will not be available for new
build homes.
