The return of 95% mortgages to the market
Homebuyers can look forward to getting onto the property ladder following the re-introduction of 95% mortgages.
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The first announcements on low-deposit mortgages were made in March by Accord, Yorkshire Building Society’s brokerage arm, and the Bank of Ireland. This comes after lenders abandoned such products in the wake of the Covid-19 pandemic and its impact on the property market.
The moves were sparked after the announcement by Chancellor Rishi Sunak of the mortgage guarantee scheme in his budget delivered in March this year. This was designed to encourage lenders to offer higher loan-to-value mortgages to creditworthy consumers in the UK.
Help to Buy
Although the announcement was designed to help first time buyers, it will also benefit any purchaser looking t...