Joy for first-time buyers as 5% deposit mortgages return
- Credit: Getty Images/iStockphoto
Mortgages requiring just a 5% deposit have been reintroduced - in what is set to be a boost for first-time buyers trying to get onto the property ladder.
The average price tag on a home in the country has jumped by nearly £7,000 in the space of the month.
That has pushed average seller asking prices to a new record high of £327,797 in April, according to property website Rightmove.
But chancellor Rishi Sunak has revealed there will be a new mortgage guarantee scheme starting this month.
While the pandemic has given some first-time buyers time to save up cash, many have been unable to climb on the property ladder without finding at least a 10% deposit.
You may also want to watch:
Now, this new scheme will provide a guarantee to lenders who offer mortgages to people with a deposit of just 5% on homes valued up to £600,000.
Buyers will also be able to fix their initial mortgage rate for at least five years if they want.
- 1 'It could have been a lot worse' - Thatched home owner thanks crews after fire
- 2 Suspected drug dealer arrested on 18th birthday
- 3 Suffolk elections 2021: When to expect results
- 4 London man, 29, charged with drug offences in Bury St Edmunds
- 5 Police hunt for man who failed to attend court
- 6 Thieves steal mobility scooter from elderly man in his 90s
- 7 Election 2021: All you need to know about Police and Crime Commissioner polls
- 8 1 in 3 have now had both Covid vaccine doses in Suffolk
- 9 Ed Sheeran to end break from music with performance at Big Weekend
- 10 Heavy rain expected in Suffolk over the weekend
The scheme will be available for new mortgages up to December 31, 2022.