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Low-deposit mortgage scheme launches today

A new government-backed mortgage scheme will help first time buyers or current homeowners secure a mortgage with just a 5% deposit.

95% mortgage guarantee launches today and will be available on high streets across the country. The new low-deposit mortgage scheme is part of a range of ownership options to help make home ownership a reality for many UK residents.

New figures show demand for home ownership has soared during lockdown, with nearly 80% of private renters now saving for a deposit. Today’s launch further strengthens government commitment to supporting the housing sector.

Since 2010, more than 663,000 households have been helped into home ownership through government schemes, but when asked, 69% of private renters and 63% of those living at home who had looked into a mortgage said they cannot find many mortgages with a low deposit.

The new scheme will be available to anyone buying a home costing up to £600,000, unless they are buy-to-let or second homes.

Housing Secretary Rt Hon Robert Jenrick MP said “For too many people, no matter how hard they work, home ownership can seem out of reach. One of the biggest divides in our country has been between those who can afford their own home and those who cannot.

“That’s why we are determined to do everything we can to help hard-working families and prospective first-time buyers get their feet on the housing ladder in an easy and affordable way, to level up this country.

“In recent years we’ve reversed the trend and seen a positive increase in owner-occupiers. We’re determined to build on this through the range of flexible ownership options which help ensure home ownership is achievable. We want to match the ambitions of aspiring homeowners up and down the country. Together we can turn ‘Generation Rent’ into ‘Generation Buy”.

 

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