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New 95% mortgage scheme for first-time buyers launched by government

Posted by Guardhog Team on May 4, 2021 · Blog

A new government-backed 95% mortgage scheme has been launched from 19th April 2021, which allows first-time buyers to purchase a home with only a 5% deposit.

Instead of putting down a 15-20% deposit on new homes, first-time buyers will be able to pay a 5% deposit and spread the rest over mortgage payments and are available on high streets across the country.

A a new house purchased with the help of the 95% mortgage scheme.
insurance for first-time buyers

Demand for homeownership soared during lockdown

Figures show that nearly 80% of private renters are now saving for a deposit to help purchase their own property, with the new 95% government mortgage scheme aiming to help boost the housing market and help first time buyers that may have been hit hard financially by the pandemic.

Housing Secretary Rt Hon Robert Jenrick MP said: 

“Together we can turn ‘Generation Rent’ into ‘Generation Buy’.”

With Rishi Sunak adding:

“Every new homeowner and mover supports jobs right across the housing sector, but saving for a big enough deposit can be hard, especially for first-time buyers.

By giving lenders the option of a government guarantee on 95% mortgages, many more products will become available, boosting the sector, creating new jobs and helping people achieve their dream of owning their own home.”

You can find out more details about the new government 95% mortgage scheme here.

First-time buyers can also take advantage of the current stamp duty holiday. You can find out more information in our blog post: Stamp duty holiday – Everything you need to know.

First-time buyers saving up for their first house

First-time buyer home insurance

Buying your first home is an exciting time in one’s life. Making sure that you have the right protection in place to protect your new home is crucial. We know that choosing an insurance provider is no easy task, especially for the first time. 

Here at GUARDHOG, we pride ourselves on our personal service and the fact that our team has a wealth of knowledge to help you make the right decision when it comes to getting the best and most affordable cover.

We have an insurance panel of over 10 providers, so we can offer you a really competitive price, with some of our insurers offering discounts for first-time buyers. 

Our friendly experts are always on hand to answer all of your questions and queries, whether by phone or email, and you will always have a direct line to an actual human being. 

So no automated emails or being put on hold for 4 hours.

Fill out our HOUSEHOLD form and a member of our team will get back to you with a quote as quickly as possible!