New 95% Mortgage Scheme Launches
The new government-backed 95% mortgage scheme launched on 19 April 2021. High street lenders including Lloyds, Santander, Barclays, HSBC, and NatWest have all signed up to the scheme. OGR Stock Denton’s residential conveyancing team are highly respected panel members on all four aforementioned lenders.
With studies showing that 80% of renters are now actively saving for a deposit, the ability to borrow up to 95% of the value on a property will ensure more people realise their dream of owning their own home.
How does the 95% mortgage scheme work?
With rents rising every year, the challenge to getting a foot on the property ladder is saving the necessary deposit. During the Coronavirus pandemic, 95% mortgages virtually disappeared, putting a further barrier between Generation Rent and their desire for homeownership. At the most recent Conservative Party Conference Boris Johnson made a promise to tackle inequality in the housing market. By providing a government-backed low deposit scheme for properties purchased for £600,000 or less, thousands more will be collecting keys from an estate agent between April and when the scheme closes in December 2021.
Susan Allen, CEO of Retail and Business Banking at Santander gave her backing to the scheme, stating:
“We know that raising a large deposit can often be challenging for potential home buyers, so we’re pleased to be part of the government’s Mortgage Guarantee Scheme offering a range of 95% mortgages to help both first-time buyers and home movers.
As one of the UK’s largest mortgage lenders we see how important homeownership is to our customers and we use our wide experience and expertise to support them throughout the home buying process.”
How OGR Stock Denton’s Conveyancing Lawyers can help you with the 95% government-backed mortgage scheme
With years of experience in the residential property market, our Residential Conveyancing Solicitors will ensure your 95% mortgage application and property purchase transaction goes through smoothly. You can be confident that we will apply for all the necessary property searches and carefully examine the title and explain any issues that may affect your future enjoyment of the property. As a full-service law firm, we can also assist you with other legal issues relating to your new home, for example drafting a Will or a Pre or Post-Nuptial Agreement.
Reacting to the news that the 95% mortgage lending scheme has been launched, Michael Stock, who heads up our Property Department comments:
“The Government’s Mortgage Guarantee Scheme will provide the boost many prospective home-buyers need to get on the property ladder. However, no property acquisition is without risk. It is essential to have an experienced Conveyancing Solicitor examine the mortgage offer and the details of the property to ensure the risk of falling into negative equity is mitigated. Most of our clients and their families remain with us long-term because they appreciate that we take the time to get to know them and trust that they will be swiftly notified regarding any concerns around their property purchases.”
Whether you are buying a pre-existing home or a new build, our North London based Property Lawyers will provide expert advice and ensure your interests are fully protected.
To make an appointment to discuss any aspect of residential property law please email or phone 020 8349 0321.