Finance

The 95% Mortgage

The return of the 95% mortgage, coupled with an extension to the stamp duty holiday,

As a product, the 95% LTV (loan to value ratio) mortgage is nothing new. Many of us will recall the infamous, plentiful 100% mortgages that were available back in the 1990s, where swathes of homeowners were lured by the prospect of stepping onto or advancing further up the property ladder.

When the spectre of negative equity began to loom in the wake of the housing market institutions was that mistakes wouldn’t be repeated. And yet, a decade later, the Northern Rock debacle, at a time when 115 and 125% mortgages were being bandied about, proved that lenders will always look for means grabbing headlines and winning customers.

It’s a relief in a sense that caution came about when the global Coronavirus pandemic struck. Many of the premium 95 and 90% mortgages were removed from the market, these at the start of March is a sign that the economy is about to receive a shot in the arm that is every bit as gamechanging

The 95% mortgage is typically a good credit score, who are and who are willing to pay the higher interest rates associated with these deals. Whilst the restriction of the purchase has also been lifted, these deals remain for the few rather than the many.

buy scheme. That’s the same 95% LTV mortgage which also loans the buyer an additional This is only available for new While initiatives by the Treasury sound good, the government’s incentives are only secondary to buyers having a regular, secure income. It’s because of this that the retention of jobs is so vital, and the government will look to keep both workers and employers happy with initiatives for as long as possible, given that if the job market nosedives, so too will the housing market.

they will lay the platform for solid growth across the board.