Twenty7Tec comments on the mortgage guarantee scheme announced in The Budget

James Tucker, the CEO at Twenty7Tec, comments on the announcement regarding the mortgage guarantee scheme in The Budget by the Chancellor.

“The mortgage guarantee scheme will be introduced in April 2021. It provides a guarantee to lenders across the UK who offer mortgages to people with a 5% deposit of just on homes with a value of up to £600,000.

“It’s available to all new mortgages until 31 December 2022, and will require lenders o to give buyers the opportunity to fix their initial mortgage rate for at least five years should they wish to.”

“Several major lenders who have already announced that they are joining the scheme – Lloyds, NatWest, Barclays, Santander and HSBC and Virgin, which is great news.

“However, between these lenders, they only cover 32.5% of the mortgages in the 90%+ market originated by brokers and intermediaries. There’s more work to be done to get this scheme really working and getting the remaining six out of the top ten lenders in this bracket within the scheme. Adding those lenders would mean that the scheme would cover around 74.84% of all mortgages based on our pre-Covid figures from last year.”

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Main photo courtesy of Pixabay