Boost for housing market with government 95% mortgage scheme launch

A new government-backed mortgage scheme to help people with smaller deposits get on to the housing ladder is available from today (April 19).

The scheme, which was first announced at the Budget, will help first time buyers and current homeowners secure a mortgage with a five per cent deposit to buy a house of up to £600k.

The scheme is now available from lenders on high streets across the country, with Lloyds, Santander, Barclays, HSBC and NatWest launching mortgages under the scheme today and Virgin Money following next month.

Housing Secretary Rt Hon Robert Jenrick MP commented: “For too many people, no matter how hard they work, home ownership can seem out of reach. One of the biggest divides in our country has been between those who can afford their own home and those who cannot.

“That’s why we are determined to do everything we can to help hard-working families and prospective first-time buyers get their feet on the housing ladder in an easy and affordable way, to level up this country.

“Despite the challenges faced over the past year, the government has intervened to protect jobs, support builders and buyers to help keep the housing market healthy. Today’s 95 per cent mortgages launch further strengthens our commitment to build back better from the pandemic.”

Chancellor of the Exchequer Rishi Sunak added: “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.”