Joy for first-time buyers as 5% deposit mortgages return

The new government-backed mortgage scheme will help first time buyers

The new government-backed mortgage scheme will help first time buyers - 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.

Most Read

The scheme will be available for new mortgages up to December 31, 2022.

Become a supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter