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
Data from Rightmove shows that Sunbury-on-Thames in Surrey was the number one house price hotspot in 2024. The prices in this area climbed an impressive 12.5% - increasing from an average price of £527,005 in 2023 to £592,926 in 2024.
Buy to Let Stamp Duty Changes April 2025
3 days ago
On the 31st October 2024 stamp duty for those purchasing additional properties increased by 2% from 3% to 5%.
From 1st April 2025 the threshold will be reducing from £250,000 to £125,000
Where did Londoners move to in 2024?
8 days ago
Research from Metro shows that those who chose to move home didn’t actually move that far away. With a 430g pack of chicken costing on average almost double in London than the rest of the UK, it's no wonder some people are choosing a change of scenery to save a few pennies.
Reasons to get a Buy to Let Mortgage
12 days ago
Following recent changes in the Buy to Let market, some investors may find this product less appealing. However, if done correctly, building a buy to let portfolio can be very profitable.
Stamp duty: how is it changing in 2025?
25 days ago
Helping you understand the upcoming changes in stamp duty (SDLT) from April 2025.
UK homebuyers and homeowners are hoping for stability in 2025.
We are hoping that mortgage rates will ease this year, but how drastically depends on inflation trends, swap rates, and the Bank of England’s decisions in which way the base rate should go.
Budgeting over the Christmas Period
3 Dec 2024
The most wonderful time of the year can easily turn into the most expensive time of the year. Watching the pennies doesn’t mean that the Christmas festivities have to stop, following a few budgeting tips can mean you still have a special Christmas and don’t go into the new year in debt.
Preparing your home to sell in winter
29 Nov 2024
December is usually a less desirable time to buy as many people don’t want to move over the holidays. However, prospective buyers do start to look at this time. Selling your home in winter may require a bit of extra attention to showcase your property at its best.
More information
Trusted by
