Help for first time buyers, looking for the best mortgage deals.
Home buyers in Wales, with small deposits, may get the best mortgage deals with help from a new initiative. The new Welsh scheme will benefit home buyers in a similar way to the NewBuy scheme in England.
Under the new scheme home buyers can borrow up to 95% loan to value, with underwriting from house builders and the government. Buyers, including first time buyers and those with only a small deposit, will need just 5% of the property value.
The scheme, is expected to run for 3 years, for new build home purchase up to a value of £250,000. It is hoped that this will help people onto the property ladder and allow others to move to larger homes.
Some lenders require a minimum 20% deposit, which puts many of the best mortgage deals out of reach of first time buyers. For many people a 20% deposit is an impossible requirement, so schemes such as NewBuy fill a gap in the mortgage market.
It is hoped that the Welsh scheme will help around 3,000 people to buy a home with the £27million mortgage guarantee. Reports suggest the Welsh government hopes that this will potentially bring up to £500milllion of investment into the housing market.
If you are a first time buyer or have only a small deposit, call Deal Direct for mortgage advice. We source the best mortgage deals from lenders to offer you the lowest rates available.
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