The 95% mortgage scheme was launched on the 19th of April 2021 by the government, and will initially run until the 31st of December 2022. As a result, the government will partially guarantee the mortgage, specifically the amount over 80%. With a 5% deposit mortgage, this means that the government guarantees 15% of the value of the mortgage. In the event the homeowner defaults on their mortgage repayments, the government will compensate the lender this amount.
By shouldering some of the risk, the government is encouraging lenders to offer 95% mortgages with a 5% deposit. These smaller deposits can be saved up for quicker than traditional 10% or 20% deposits, which means that you can be settling into your new dream home sooner, rather than later.
Discover how Fees Free Mortgages can help you find the perfect 95% mortgage with a 5% deposit scheme to help you to get on the housing ladder, or help you take the next step.