A further boost to the property market: 95% mortgages launched today

19th April 2021

With Rightmove reporting that homes are currently taking just 45 days to sell – the fastest ever reported by the portal – further incentive has been given to the property market with its 95% mortgage guarantee scheme that has launched today for properties up to £600,000.

Buyers will only need a five per cent deposit to secure a property with a number of lenders including HSBC, Barclays, Santander, NatWest, and Lloyds prepared to lend the rest of the amount.

It is thought that it will mainly help first time buyers with smaller deposits – the average deposit for first time buyers is typically 15 per cent – following the removal of many high loan-to-value mortgages due to the pandemic. It is also said that it will help existing homeowners who wish to move up the property ladder.

The scheme will also further aid the existing momentum in the property market that is one of the backbones of the UK economy.