The Chancellor has announced a scheme to help people with deposits as low as 5% secure a mortgage and get on the property ladder.
The scheme is open to all first-time and existing homeowners, purchasing homes worth up to £600,000 and available from April 2021.
How will the scheme work?
The government will guarantee part of the loan provided to buyers by mortgage lenders, reducing their risk. This is intended to encourage more lenders to offer mortgages to those with smaller deposits. A Help to Buy supported mortgage works in exactly the same way as any other mortgage. The guarantee does not extend to the borrower's payments, the guarantee protects your lender rather than you (as a borrower) against losses.
Under the scheme, all buyers will have the opportunity to fix their initial mortgage rate for at least five years should they wish to.
You can find out more about mortgage guarantee loans direct from your mortgage lender or financial advisor.
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