- Local Tamworth MP Christopher Pincher introduces new Mortgage Guarantee Scheme to help home buyers across Britain
- New scheme allows first time buyers and current homeowners to secure a mortgage with just a 5% deposit
- High street lenders Lloyds, Santander, Barclays, HSBC and NatWest already offering the scheme with Virgin Money to follow next month
Local MP Christopher Pincher, the Minister of Housing, has encouraged first time buyers and current homeowners in Tamworth that will be able to benefit from the Government’s new 95% mortgage scheme. This will make it easier for first-time buyers to access the housing ladder with deposit amounts effectively cut in half and mortgage deposits found to be one of the biggest barriers to becoming homeowners.
The Mortgage Guarantee Scheme will see buyers only have to pay a 5% deposit for a mortgage with many major high street banks supporting the move.
House prices have slowly risen as Britain has recovered from the Coronavirus pandemic and figures show an average price rise of 5% across housing in Tamworth. The pandemic has led to a change in housing, with consumers looking for extra bedrooms, bigger gardens and more home working space.
The Government’s response will allow buyers to access a 95% mortgage scheme on homes valued up to £600,000. This will mean home ownership is even more accessible to the 76% of private renters and 70% of those living at home who have said that they are currently saving for a deposit.
The new deal is currently available at major high street banks: Lloyds, Santander, Barclays, HSBC and NatWest, with Virgin Money set to join next month.
Prospective buyers will still be able to benefit from the Help to Buy, Shared Ownership and First Homes Scheme that have already helped a 40% increase in mortgage approvals compared to last year.
Commenting, local MP Christopher Pincher said:
‘As a Government Minister I am proud to be involved in continuing the Government’s commitment to helping homeownership in Tamworth, and across the country. Earlier this year the Chancellor supported our plans to extend the stamp duty holiday and this new scheme will make home ownership even more accessible and affordable.’
‘As we continue to re-build after the pandemic, we want as many people as possible to have the choice to get on the housing ladder. More homes were delivered in 2020 than any year since 1987 and we need mortgages to be affordable. This scheme will give more people the choice to buy and keep the Government’s commitment to delivering homes across Britain.’
The Mortgage Guarantee scheme launched last Monday the 19th April with applications for mortgages now available at participating lenders. More information can be found online at: https://www.ownyourhome.gov.uk/scheme/mortgage-guarantee-scheme/.