Government pledges new 5% deposit mortgage scheme

New low deposit mortgage scheme announced

Prime Minister Boris Johnson has announced plans to turn ‘generation rent into generation buy’ with a new 5% deposit mortgage scheme.

Under the proposed initiative, millions of hopeful homeowners could be given a helping hand with a new long-term, fixed rate mortgage of up to 95% of the value of the home.

Whilst we do not know exactly how the 5% deposit mortgage scheme will work or when it will launch, it could see the biggest expansion of home ownership since the 1980s.

With the temporary cut to stamp duty until April 2021 and the announcement of a new Affordable Homes Programme (AHP) last month, there are positive signs that the government will be able to deliver on this.

If you have any questions or would like some information about other first time home buyer government schemes, then please get in touch.

Information correct as of 8 October 2020.