Now that the government has introduced a new scheme to help buyers with a low deposit, we’re here to break it down and explain the intricacies of the low deposit mortgage and why it might just be the right option for you…  

Essentially you are now able to purchase a normal residential home with as little as a 5% deposit this is for First Time Buyers or if you already own and are looking to move home. The mortgage lenders are now able to offer these products as the Government is giving them a guarantee in the background.

Nine in ten 90% and 95% mortgages were withdrawn from the market in the wake of the Covid-19 outbreak last spring, which left terrible options for first time buyers, even with the stamp duty break. A year on as the economy slowly recovers from the pandemic, things are looking much better for first-time buyers with low deposits. The vast majority of major lenders have brought back their low deposit mortgages offering a wealth of choice over the last six months.

The new mortgage guarantee scheme was launched in April 2021 by the UK government. This was established to encourage lenders to offer 95% mortgages by taking on some of the financial risks involved, such as if a buyer defaults on their loan for instance, although this rarely happens. The guarantee scheme has proven successful so far, with 132 fixed-rate 95% deals now available, compared to just five at the start of March. We’re here to help you find the best possible option for you by  understanding your full financial situation, through an honest, open conversation. We’ll speak with you to assess and find the right lenders for your circumstances.

A Firstxtra mortgage advisor has the experience and knows which lenders can assist buyers with a smaller deposit but also knows if stretching to a 10% deposit could be worthwhile and save significant money. When taking out a 90% or 95% mortgage, you can potentially borrow up to four-and-a-half times your annual income. Our philosophy is to give great advice whether or not we can help you and provide the highest level of customer service to all our clients. We are very proud of the advice and service we provide and have loads of fantastic customer reviews at www.feefo.com/en-GB/reviews/firstxtra , knowing that we can help you navigate the often overwhelming and confusing world of finance.

Our professional mortgage adviser team is available Monday – Saturday.
Please call 01635 524391, or contact us here – we will endeavour to respond to you within 48 hours. 

The information contained within was correct at the time of publication but is subject to change.

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