Why homebuyers should be wary of the new crop of 95% mortgages
© Getty Images The government has rolled out its latest weapon in the battle to turn Generation Rent into Generation Buy. A new state-backed mortgage scheme, launched in mid-April, aims to help prospective home buyers with 5% deposits. First-time buyers and existing homeowners who are moving are eligible, up to a purchase value of £600,000 (second home and buy-to-let acquisitions are excluded).The help takes the form of a guarantee to the lender: the state will step in for the portion of the loan over 80% if the buyer defaults. The latest state subsidy for the housing market aims to addre...
Source: moneyweek.com