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Budget 2021: first time buyers – key questions answered

property

Government have announced a new 95% mortgage scheme in the 2021 budget. Here’s what we know so far;

What is a 95% mortgage? 

This means the buyer has only to find 5% of the purchase price plus the legal and surveyor’s costs for the purchase. It is likely to be a scheme similar to the Help to Buy but details will no doubt follow in the coming weeks.

Do I have to be a first time buyer to qualify?

No. There was talk of the scheme being for first time buyers only, but when the speech came around, it wasn’t specifically mentioned. It seems that all property buyers are eligible for the scheme (although there will be a price cap).

How will this make it easier for me to buy a property?

Lenders no longer provide 95% mortgages which means a buyer has to find more of a deposit to buy a home. The scheme will help a buyer bridge the gap.

Will it mean I am in mortgage debt for a longer period of time? 

Not necessarily. This will be a decision to be made when a buyer discusses his/her mortgage requirements with their lender.

How long will it be until the 95% mortgage offer ends? 

Full information of the scheme is not yet known – as we learn more, we will share details.

Is this the best time for me to buy a property as a first time buyer? 

It would be best to wait to obtain details of the new scheme, and it very much depends on personal circumstances. In theory, this might be a very good time to start looking at getting on the property ladder.

When we know the small print of the new scheme in coming days and weeks we will share details, look out in the blogs and news page of the Morecrofts website

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