It looks like the Government’s Help to Buy 2 scheme will come to an end on 1st January 2017 as planned.
For those of you who get a bit muddled about which help to buy is which, it’s basically the one where the Government acted as guarantor to mortgage lenders to enable them to lend 95% mortgages, post credit crunch.
I don’t think there is anything really to worry about here, a lot of lenders have quietly moved away from Help to buy 2, preferring to lend their own funds which is clearly more profitable for them. Of course the applicant never knows if their particular scheme is government backed or not, all they need to know is “Are there 95% funds available.”
The answer to this post H2B2 is most certainly going to be “Yes.” Santander, Halifax, Accord, Nationwide, and Newcastle Building Society have all announced that they will be offering 95% mortgages in 2017. Other lenders are yet to announce their positions.
All lenders are more risk averse post credit crunch (and possibly post Brexit), but a first time buyer with a 5% deposit who manages to get through the lender’s credit score ticking every “responsible lending” box along the way, would seem like a pretty safe bet to me.
The number of available 95% products available remains significantly higher than in 2015 and the interest rates on offer have fallen recently.
My advice to anyone saving for their first home is to open a Help to Buy ISA account TODAY! This is the best place to save for your deposit as the government will give you some money to boost your savings.
Once you have got the government boost and exhausted the Bank of “Mum & Dad, ” if you only have a 5% deposit I am pretty sure there will be a lender with a competitive rate ready to receive your application.
Related Blog articles:
For more information speak to a mortgage adviser on 01628 507477 or contact us .
Recent posts
The Equity Release Council has revealed that three in five UK homeowners are interested in releasing money from their property later in life.
Prices for UK houses drop in July 2024
9 days ago
The average seller’s asking price dropped by 0.4% in July, a bigger drop than we have typically seen.
We explore the differences between Millennials and Gen Z and what both generations ideally want from a new home.
Overpaying mortgage vs money into savings
18 Jun 2024
Should you overpay your mortgage? If you can put extra cash away you need to seriously consider whether you should pay more off on your mortgage or put it into a savings account.
Buying a property, especially in the current climate, is a big decision for first time buyers. We have listed a few tips that can help you buy your first propertyy
Does the time of year make a difference in house purchases? The answer is, yes and no.
The popularity of buying a house can vary depending on various factors such as regional trends, how the economy looks, and of course personal circumstances.
6 Garden Tips to Add Value to Your Property
30 Apr 2024
If you are looking at putting your house on the market, you may want to consider giving your garden some TLC. Small changes can make your outside space a lot more attractive to potential buyers resulting in a faster sale.
Averages for a first time buyer in the UK
24 Apr 2024
Getting on the property ladder is a big milestone in life, and is not something to take lightly. There are several things to take into consideration such as saving up for a deposit, finding your dream home, and finding the best mortgage product to suit you. Here we look at UK first time buyer statistics.
More information
Trusted by
