The government will guarantee repayment of up to 15 per cent of your mortgage to the lender if you default. This means you’ll still need a 5 per cent deposit and a 95 per cent mortgage, but as 15 per cent of that 95 per cent will be guaranteed, you’re more likely to have access a wider variety of mortgages.
- They are available to both first-time buyers and existing home owners
- You’ll need a minimum of a 5 per cent deposit
- It must be your only property
- It is available on all previously owned and new-build properties in the UK up to a £600,000 value
- You can borrow only from a participating mortgage lender
- It cannot be part of a shared ownership or shared-equity purchase
- The scheme will run until 31 December 2016
Speak to a mortgage adviser to help you find the best solution for your circumstances.