How much could the Government’s new 95% LTV scheme save first-time buyers?

While the finer details are yet to be revealed around last week’s Government announcement of a tax-payer backed 5% deposit mortgage for first-time buyers, research by GetAgent has revealed that it could save the average first-time buyer as much as £17,981.

Mortgage affordability criteria is often limited at no more than four to four and a half times a buyer’s yearly income. As a result, across Britain the average first-time buyer currently puts down a deposit of 14%.

Should the latest offering by the Government relax rules around lending affordability criteria as is widely expected, a 5% option would not only reduce this requirement by 9% but would lower the initial financial barrier for first-time buyers by £17,981.

For further information: https://www.financialreporter.co.uk/mortgages/ow-much-could-the-governments-new-95-ltv-scheme-save-first-time-buyers.html

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