Mortgage Guarantee Scheme

Mortgage Guarantee Scheme

At Hb 121 Solicitors in Wolverhampton, Kidderminster and Stourport-on-Severn our conveyancing solicitors can help guide you through purchasing your home. Our property solicitors are up-to-date and experienced in all governmental schemes supporting people to purchase new homes.

A new scheme has been launched on the 19 th April by the Government aiming to provide more 5% deposit mortgages for creditworthy people.

What Is the Mortgage Guarantee Scheme?

The mortgage guarantee scheme offers lenders the option to purchase a guarantee on mortgages where a borrower has a deposit of only 5%.

The guarantee compensates mortgage lenders for a portion of net losses suffered in the event of repossession. The guarantee applies down to 80% of the purchase value of the guaranteed property covering 95% of these net losses. The lender therefore retains a 5% risk in the portion of losses covered by the guarantee.

Eligibility

To be eligible for this scheme you must:

• have the balance of the deposit
• be purchasing a pre-owned or newbuild properties
• pass standard credit checks and affordability assessments performed by your lender
• intend to purchase the property as your main residential home (buy-to-let, second homes and interest only mortgages are excluded)
• make sure the property is no more than £600,000.00

At HB 121 Solicitors in Wolverhampton, Kidderminster and Stourport-on-Severn our team of highly qualified conveyancing solicitors are dedicated with dealing with your transaction to make sure that the process is smooth and easy to understand.

Please contact HB 121 Solicitors by email: info@hb121solicitors.co.uk or call our offices: 01562 702655 or make and online enquiry and one of our team will be in touch.