During the 2021 Budget it was announced that new 95% mortgages will be introduced. These have been created to support first time buyers with getter on the property ladder, even if they only have a 5% deposit for their home.
This new 95% mortgage scheme has been introduced by the government. It will enable mortgage lenders to offer loans of up to 95% of the value of the property. Boris Johnson has said this will help in changing Generation Rent to Generation Buy which is a big goal of his.
The 95% mortgages in Peterborough will be available from this month, April 2021, until 31st December 2021. The scheme is solely available to buyers of properties costing up to £600,000 which accounts for around 86% of homes for sale in Peterborough.
95% Mortgages in Peterborough Explained
A 95% mortgage covers 95% of the value of the property. This means, as the buyer, you are left to cover the remaining 5% in the form of a deposit. 95% mortgages are also referred to as 95% LTV Mortgages, also known as 95% loan-to-value mortgages.
Until this scheme was introduced, more mortgage lenders were offering up to 85% mortgages. These changes mean that buyers can now save up to a third of what they would have had to pay prior to the new government scheme.
Is A 95% Mortgage Right For Me?
If you a first-time buyer in Peterborough struggling to save a larger deposit, then this new scheme is a great solution for you. It’s a great way to get on the property ladder and purchase your first home, with a smaller deposit of 5%.
However, if you are able to afford a larger deposit for your new home, it may be best to do so. The larger deposit you have the more choice you will have when it comes to finding a mortgage provider. You will also have more chance of getting lower interest rates on your mortgage with a larger deposit.
It’s important to remember that the larger deposit you put down, the lower your mortgage repayments will be too.
Want To Make The Most Of 95% Mortgages in Peterborough?
If you are looking forward to finding a new home and making the most of the 95% mortgage scheme in Peterborough, call us now. We can put you through to our mortgage advisors while our estate agents find the perfect new home for you.