UK Government introduce Mortgage Guarantee Scheme
Ballantynes were extremely pleased to learn of a new mortgage guarantee scheme from the UK Government, to support purchasers looking to buy in 2021 / 22. Purchasers can apply, subject to qualification, for a mortgage up to £600,000 with a deposit of 5%.
Launching in mid-April and running all the way through to December 2022, across the UK and available for both new build and established home sales. Purchasers will have the opportunity to fix their initial mortgage rate for up to 5-years.
Many high street lenders have already signed up. The scheme is designed to increase activity levels and offers lenders the option of a government guarantee that compensates them for potential losses.
To qualify for the Government guarantee, a mortgage will need to be:
• Specifically for residential (buy to live in) purchase and does not include buy-to-let or second homes
• In the name of an individual or individuals. This does not include purchases in the name of a company
• Specifically for property purchase in the UK with value of £600,000 or less
• Purchase will need to complete within the dates specified by the scheme
• Specifically for Repayment Mortgages and this does not cover Interest-Only Mortgages
Purchasers will need to meet the standard requirements in terms of the assessment of the purchasers ability to pay the mortgage (for example; a loan-to-income and credit score test, will have to be met).
For more information, you can contact Ballantynes and we can keep you up to date with your mortgage options and also to help you source your purchase. You can also register your search criteria HERE and we shall alert you first of any properties that we have available or coming to the market that may suit.
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