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.

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 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.

You will now be able to get a Mortgage at 95% from Mortgage Lenders including:

Barclays

Lloyds Banking Group (Including Halifax)

HSBC

NatWest

Santander

Other lenders will likely join later on down the line including Virgin Money who has been confirmed as one of these lenders.

Greater choice, generally means cheaper options.

If you would like assistance obtaining a 95% Mortgage in Coventry, please contact us below.

We will have access to every lender available at 95% loan to value, so we can help you secure the Mortgage on your new home.

Spellman Financial Services is a Mortgage Brokers in Coventry providing Mortgage advice to the people of Coventry & Warwickshire.

If you would like any individual advice or further information on any of the above or alternative Mortgage or Insurance Advice. Please do get in touch with us below or here.