This is what the property market thinks about the new 5% deposit scheme.

This scheme will seek to help buyers through a 5% deposit.

The plan, which was first announced in the most recent budget, will provide 5% of the deposit for the purchase of homes worth up to £ 600,000. In a statement, the government said it would provide an “affordable route to homeownership for aspiring homeowners.”

Housing Secretary Robert Jenrick said: “The new home equity scheme that goes into effect today will give providers the confidence to lend and help families and youth climb the property ladder without the prohibitive burden of a large deposit. Despite the challenges faced over the past year, the government has stepped in to protect jobs, support builders and buyers to help keep the housing market healthy. Today’s 95% mortgage launch further strengthens our commitment to rebuilding better after the pandemic.”

Jenrick added: “We want to match the ambitions of aspiring homeowners across the country.”

“This scheme will be of great help to first-time buyers.”

Reaction to the scheme across the industry has been mixed. Miles Robinson, Trussle’s chief mortgage officer, said the launch is positive for low-deposit buyers and offers a more accessible route to homeownership. He said there were other schemes that may be more financially beneficial for buyers.

Robinson added: “As lenders continue to view the high loan-to-value market as risky, interest rates on new LTV deals of 95% are more expensive, with some close to 4%. By comparison, the mortgage rates available to those with a 25% deposit can hover around 1.19%. So if you can spend some time saving more for your deposit, you could secure a mortgage deal at a more competitive rate in the future. If you’re a first-time buyer hoping to climb the property ladder, it’s worth taking the time to review your options. There are other homeownership schemes available for those with smaller deposits, such as Family Mortgages, Buying Assistance, and Shared Ownership.”

Chesterton’s research chief Nick Barnes was more optimistic. He said: “The market is likely to get a new boost with the start of the government’s new Home Equity scheme, which lenders will operate starting today. With 46% more properties available to buy at the end of March than a year ago, buyers will have a great opportunity to find their ideal property.”

HICH LTD has revolutionized the property survey market since day one! Are you looking for a roof, structural, or bespoke survey? Request it here!

Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!

Twitter: @HichLTD

Facebook: HICH-LTD

We are recruiting Freelance Surveyors and Building Inspectors to carry out Roof & Property Condition Inspections. You will be required to inspect and assess the full external and internal condition of various property types, new and old, including Domestic and Commercial. The position is Home-based, covering all postcode areas throughout the U.K.

Fees range from between £150-£195 per inspection, previous experience in building surveying and or buildings insurance claim surveying with a proven track record or property inspection experience essential.

If you or someone you know meets these requirements and wants to be part of the team of the best surveying company in the UK, please contact us at hichinfo@aol.co.uk