A government-backed mortgage scheme aiming to help more people get in the housing market has launched today.
First announced by Chancellor Rishi Sunak in the Spring Budget, the scheme will allow first-time buyers to secure a mortgage with a 5% deposit on a house worth up to £600,000.
The scheme aims to increase the supply of 5% deposit mortgages for credit-worthy households by offering lenders the guarantee they need to provide mortgages that cover the other 95%.
Five high street lenders are taking part in the scheme across the country as of today, with more due to start offering it next month.
Rishi Sunak said:
"Every new homeowner and mover supports jobs right across the housing sector, but saving for a big enough deposit can be hard, especially for first-time buyers.
"By giving lenders the option of a government guarantee on 95% mortgages, many more products will become available, boosting the sector, creating new jobs and helping people achieve their dream of owning their own home."
The 95% mortgage scheme is just one of multiple current Government-run home ownership options, including the help-to-buy scheme, which provides first-time buyers with a low interest loan towards their deposit.
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