Guaranteed Mortgage Scheme Begins

Following Benwell Daykin’s previous article in March, detailing the extension to the Stamp Duty Holiday and Guaranteed Mortgage scheme, they are now pleased to expand on this.

From the start of this month, the government has provided guarantees to UK lenders who offer mortgages to buyers, to secure a loan with a 5% deposit on a property of up to £600,000 before the 31st December 2022. The UK’s top five banks have announced their support of the initiative and many will roll out their offers and initiatives from the 19th April 2021.

According to data obtained from the HM Land Registry, the income and deposit needed to afford an average first time buyers property in Nottinghamshire currently stands at £12,799 for a 5% deposit and yearly income of £54,042. Certain lenders’ criteria will mean that, whilst a deposit in this region might be obtainable by many first time buyers, the four and a half times your salary requirements may not be!

If you have a good salary, but little in savings, you would benefit from the scheme. Joint purchasers with two salaries are also more likely to benefit. As we’ve seen with the Help to Buy scheme and the recent Stamp Duty holiday, the 5% deposit scheme could result in rising property prices, keeping home ownership out of reach for many first time buyers.

If you’re in the market for your first home, a buy to let property, or just unsure whether you meet the requirements for this particular scheme, Benwell Daykin would love to hear from you. Due to their continued expansion, the Ruddington based estate agents is now able to offer free initial mortgage advice in-house through its whole of market, fully qualified mortgage broker.

If you’d like to book an appointment you can just pop in to 12 High Street, email or ‘phone 0115 990 2007. Opening hours are Monday to Thursday 9am to 5.30pm, Friday 9am to 5pm and Saturday 9am to 12pm.

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