Smaller deposits are back, thanks to Rishi
In his budget announcement last month, the Chancellor Rishi Sunak took steps to make life easier for first time buyers. From April 2021 to the end of December 2022, first time buyers can take advantage of the Mortgage Guarantee Scheme. The move comes in an effort to make home buying affordable again.
During the pandemic, the number of low deposit mortgage products available, plummeted to almost zero. Buyers were having to find a minimum of 10% deposits, putting that first time purchase out of reach for many. Under the Mortgage Guarantee Scheme, the Government will guarantee the bank (or other lender), the portion of the mortgage over 80%, in the event a homeowner fails to make the payments.
If you are a first time buyer what does this mean for you?
If you were looking to buy a two bedroomed terraced house in Ball Green, currently on the market for £75,000, under the scheme you’d only require a £3,750 deposit, and you’d be able to take out a 95% repayment mortgage, with the Government Guarantee Scheme.
The scheme is available for properties that you are going to live in (not second homes) up to the value of £600k. The beautiful semi-detached, 3 bedroom cottage we have on the market in Eaves Lane, Bucknall for £250,000, would be available for just a £12,500 deposit, under the scheme.
The numbers quoted are just a guide, and would be subject to your eligibility as determined by the lender. Usually, they are looking for you to pass an affordability check – a loan to income test and check your credit score too. Don’t worry, about working everything out, we work alongside a certified and very talented professional mortgage advisor who will be able to help you to understand the options available to you.
A personable, friendly agent is just the ticket for first time buyers
At Debra Timmis, we have decades of experience finding perfect first-time properties for the people of Stoke-on-Trent. Whether you’re looking for the City Centre amenities of Hanley, or you prefer open countryside of Endon – or anywhere in between, we have intimate knowledge of what’s available in this locality, within your budget right now! With the low deposit Government Guarantee Scheme, we will give you the best chance of finding, and affording the deposit for your first home.
Contact the Debra Timmis team, to take the first steps towards finding your first home.
