Even Smaller Deposits!


Gary Oxborough is Practice Principal here at Barlow Irvin Financial Services.  This month, Gary talks about the scheme to help borrowers with only a 5% deposit and what that can mean for you.

In last month’s newsletter I spoke about the increasing availability of mortgages with only a 10% deposit. At that time, being able to offer our clients access to mortgages with an even smaller deposit of as little as 5% seemed a long way off. That was until Rishi Sunak stood up in parliament on the 3rd March!

In his Chancellor’s Budget Speech, he announced that the government were going to launch a scheme to help borrowers with only a 5% deposit get a mortgage. This was widely leaked across the media in the run up but was still a bit of a shock across the financial services industry when it was announced. Although we are yet to see any details of the lending criteria or rates that will be available when the scheme is launched in April. What we do know is that it is very similar to the scheme that was available up to the end of 2016 (known as Help to Buy 2), whereby the government will guarantee a portion of the mortgage for the lenders. What this means for you, the consumer, is that it simply provides more access to mortgages with that small level of deposit, but the lender has the additional security of knowing, should anything go wrong (i.e., they have to repossess the property), the government will cover their losses to a certain level.

We are already seeing an increase in enquiries about this and I’m sure as the mortgage products are rolled out through April and beyond, this will only continue. Taking on a mortgage is a major financial commitment, and you should always seek professional advice to ensure you are making the right choices and that maybe even more important in the case of mortgage with very small deposits.   

Time to Talk

Even if you have only just started to think about getting on the property ladder, why not get in touch for a chat. Call Gary on 01204 304 814.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

About the author 

The Barlow Irvin Team

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