Spellman Financial Services

95% Mortgages in Coventry following the budget

Budget 2021

Following the 2021 budget, the Mortgage market was provided with the following boost:

Stamp duty break extension until June 2021, before finally being phased out in October 2021.

And the biggest news of all; the return of 95% Mortgages.

What 95% Mortgages will be available

Currently, there are 95% loan to value Mortgages available on New Build Properties only.

This will now be expanded to include non newly built properties, as the Government has created a new scheme called the Mortgage Guarantee Scheme.

Best of all the Mortgage Guarantee Scheme will be open to home movers as well a First Time Buyers, meaning many applicants will be able to purchase a property with as little as a 5% deposit.

This is great for those who may have owned a property before in the past but has since been renting for example, and therefore excluded from certain First Time Buyer only Schemes.

95% Mortgages for First Time Buyers in Coventry

This will now mean a huge range of options for First Time Buyers as the Government pledges to generation rent into Generation buy.

First Time buyers will be able to choose from:

Shared Ownership with a 5% deposit.

Help to Buy: Equity Loan Scheme with a 5% deposit.

As well as the new Mortgage Guarantee Scheme.

The new Mortgage Guarantee Scheme

The new Mortgage Guarantee is just a scheme to provide lenders with confidence to lend on 95% Mortgages.

Mortgage Lenders will pay a small fee for each 95% Mortgage they lend on. And then if one of these Mortgages defaults and the Lender needs to repossess, the Lender can claim off the government if they make a loss. A bit like an Insurance policy.

It won’t be something that negatively affects you as a borrower.

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