Everything You Need To Know About 95% Mortgages in Peterborough

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.

If you are considering selling or renting your property please do contact one of our experience property professionals on 01733 567123 or email us at home@letters.co.uk. We are a local independent Estate Agent who have been working within Peterborough and the surrounding villages for over 28 years giving us an extensive knowledge of all aspects of the property market. We work with a number of trusted supplies such as solicitors, mortgage brokers, building surveyors and tradesmen giving us the ability to offer our clients everything under one roof.

We hope to hear from you soon!