Mortgage scheme to help people get onto the housing ladder
On 19 April 2021, a new government-backed mortgage scheme was introduced to help people get onto the housing ladder.
Assistance is available to help people to buy a house with a value of up to £600,000, subject to affordability and credit checks, with a deposit of just 5%.
These mortgages are available from Lloyds, Santander, Barclays, HSBC and NatWest. Virgin Money will be joining the scheme during May 2021.
To qualify for this new help scheme, mortgage applications must:
- be for a residential mortgage and not for a second home or a buy-to-let
- be taken out by an individual or individuals rather, than a company
- be on a property in the UK, with a purchase value of £600,000 or less
- have a loan-to-value of between 91% and 95%
- be originated between the dates specified by the scheme
- be a repayment mortgage and not interest-only
- meet standard requirements in terms of the borrower’s ability to pay the mortgage, for example a loan-to-income and credit score test
The scheme is a temporary measure and is available from April 2021 to December 2022.
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