What is the Mortgage Guarantee Scheme?
A new government-backed mortgage scheme will help first time buyers and home movers secure a mortgage with just a 5% deposit.
The UK Government's mortgage guarantee scheme provides support for major banking institutions such as Barclays, HSBC, Lloyds Bank, Natwest and Santander to offer 91-95% LTV mortgages, meaning that homebuyers could purchase their home with just a 5% deposit.
Mortgages issued under the scheme are backed by the UK Government. This means, if the buyer were unable to pay back the loan, the UK Government would financially support the lender to help mitigate any losses.
Who can take advantage of the Mortgage Guarantee Scheme?
The scheme was launched in April 2021 and is open to new applications until December 2022.
Along with the normal mortgage checks, to be eligible, the mortgage must be:
For a property valued no more than £600,000
On a property not classed as a new build property
A loan-to-value (LTV) of between 91% and 95%
A residential mortgage (i.e., not a second home, or buy-to-let property)
A repayment mortgage and not an interest-only mortgage
Taken out by an individual or individuals, not a business
Also, the buyer will be unable to take out any additional borrowing on their mortgage for the next 7 years.
How can Convey Choice help?
Convey Choice are already geared up to make the referral process as easy as possible for you and your client through our intuitive online conveyancing platform.
At just £525 + VAT legal fees for properties under £600,000, our mortgage guarantee scheme homebuyer can take advantage of our fixed legal fees.
To obtain an accurate conveyancing quotation and have your client up and running with one of our expert law firms, register with us today!
Our extensive knowledge and expertise ensure that homebuyers are in safe hands. For any further information, you may require to visit www.conveychoice.co.uk or contact one of our friendly BDMs on 0117 959 5100 who would be pleased to speak with you.