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Mortgage Guarantee Scheme in Birmingham

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Mortgage Guarantee Scheme in Birmingham

The Mortgage Guarantee Scheme is a government-backed initiative that enables borrowers in Birmingham to take out a mortgage with just a 5% deposit.

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What is the Mortgage Guarantee Scheme in Birmingham?

The Mortgage Guarantee Scheme is a government-backed initiative that allows borrowers to secure a mortgage with only a 5% deposit.

This scheme is available to both first-time buyers and home movers in Birmingham, making mortgages more affordable for a broader range of individuals.

Since its inception in January 2021, the scheme has enabled thousands of people to achieve homeownership.

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Mortgage Guarantee Scheme in Birmingham

How does the Mortgage Guarantee Scheme work?

To begin, you will need a 5% deposit based on the property’s value. For instance, a property priced at £200,000 would require a £10,000 deposit.

Once you have this deposit, you can apply for the scheme through your bank or a mortgage broker in Birmingham.

At Birminghammoneyman, we have access to thousands of mortgage deals, not just in-house products, to help you find a 95% LTV mortgage that saves you money.

Mortgage Guarantee Scheme Eligibility

To qualify for the Mortgage Guarantee Scheme, you must meet specific criteria:

  • The scheme is open to both first time buyers and existing homeowners in Birmingham.
  • The property you wish to purchase must not exceed £600,000, applicable to both new builds and existing properties.
  • You must provide a deposit of at least 5% but less than 20% of the property’s purchase price.
  • The property must be a residential home in the UK. Buy-to-let properties and second homes in Birmingham are not eligible.
  • Only repayment mortgages are eligible under this scheme.
  • You must pass the lender’s credit check requirements.

For more information on your eligibility, please get in touch with our mortgage advisors in Birmingham.

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FAQs From First Time Buyers in Birmingham

How to apply for government Mortgage Guarantee Scheme?

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Applying for the Mortgage Guarantee Scheme in Birmingham is a straightforward process. Follow these steps to get started:

  • Check Eligibility: Ensure you meet the scheme’s criteria. The property must be valued at £600,000 or less, you need at least a 5% deposit, it must be a residential home in the UK, you must take out a repayment mortgage, it should be your main residence, and you need to pass lender credit checks and affordability assessments.
  • Finding the Right Lender: Not every lender in Birmingham participates in the Mortgage Guarantee Scheme. Using a mortgage broker in Birmingham allows you to relax while they find a product tailored to your personal and financial situation.
  • Prepare Your Application: Once your mortgage broker in Birmingham selects the perfect deal for you, prepare your application. You will need proof of identity, proof of address, proof of income, and a copy of your credit report.
  • Submit Your Application: After preparing all the necessary documents, submit your application to the mortgage lender. While they perform their checks, all you need to do is wait for updates.

Just like a traditional mortgage, the Mortgage Guarantee Scheme process can take anywhere from 3-9 months to complete. Using a mortgage broker in Birmingham can significantly speed up your process as they handle all the paperwork, ensuring a stress-free experience.

How much can I borrow with the Mortgage Guarantee Scheme?

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The Mortgage Guarantee Scheme in Birmingham allows you to borrow 95% of the property’s value. This means you will take out a 95% LTV mortgage after providing your 5% deposit.

You still need to find a mortgage product that matches the property you’re looking to buy. A mortgage broker in Birmingham can potentially help you save money on your mortgage repayments.

How does the Mortgage Guarantee Scheme help?

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The Mortgage Guarantee Scheme in Birmingham can help you achieve homeownership much quicker. Saving for a 10% deposit can be challenging, but with this scheme, buying a new property becomes more realistic and attainable.

Is a 5% mortgage hard to get?

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With the Mortgage Guarantee Scheme in Birmingham, you may be eligible for a mortgage with just a 5% deposit via a 95% LTV mortgage. However, you must first qualify for the scheme.

It’s key to review the scheme’s criteria before applying. For Mortgage Guarantee Scheme advice in Birmingham, speak with one of our mortgage advisors and book your free appointment today.

How do mortgage lenders benefit from the Mortgage Guarantee Scheme?

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The scheme enables lenders in Birmingham to purchase a guarantee on the mortgage, allowing them to recover their money in the event of repossession. The guarantee covers up to 80% of the property’s purchase value, addressing 95% of the net losses within this portion.

Consequently, the lender is responsible for 5% of the losses covered by the guarantee. This arrangement ensures that the lender retains a stake in every loan, maintaining a degree of risk and encouraging prudent lending practices.

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Our Simple Mortgage Process

Free 30-Minute Mortgage Appointment

Step 1

Let's address the challenges you're facing and your aspirations with a trusted mortgage advisor in Birmingham.

During your free mortgage appointment, share details about your income and expenses to determine your affordability.

We Can Search 1000s of Mortgage Deals

Step 2

While certain circumstances may limit your options, we meticulously sift through thousands of deals to find the optimal solution for you.

Our next step involves obtaining an agreement in principle, bolstering any purchase offers you make.

Submit Your Mortgage Application

Step 3

Once you accept a purchase offer, your dedicated mortgage advisor in Birmingham will submit your full mortgage application alongside the necessary documents.

Expect regular updates from your case manager until you receive your mortgage offer and finalise your purchase.

Protecting You and Your Mortgage

Step 4

Our service surpasses securing the best deal; we provide guidance on relevant insurance policies to protect you and your family financially.

When it's time for your mortgage renewal, we'll proactively reach out to ensure you remain on the most advantageous terms.

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Renowned for our expert, swift, and personable mortgage advice in Birmingham, we're committed to guiding you throughout the mortgage journey.

Don't hesitate; schedule your free initial mortgage appointment with our expert advisor today.

1000s of Deals

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We're here to address all your queries throughout the process, striving to fulfil your mortgage needs with our high-quality advice in Birmingham.

Our aim is for you to secure a mortgage deal that aligns with your personal and financial circumstances.

Our Service

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With two decades of accumulated knowledge and experience, our trusted team of mortgage advisors in Birmingham recommends the most suitable mortgage deals tailored to your current situation.

Concerned about your credit score? Obtain an up-to-date credit report before your appointment to enhance our understanding of your situation and available deals.

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Our dedicated mortgage advice in Birmingham prioritises delivering the best service possible, ensuring you're well-informed and receiving responsive, tailored assistance throughout the mortgage process.

Malcolm and Amy Davidson - Mortgage Advice in Birmingham

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Are there other schemes to help me get a mortgage?

Shared Ownership in Birmingham

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The Shared Ownership Scheme in Birmingham offers a pathway to homeownership by allowing borrowers to purchase a share of a property and pay rent on the remaining portion. Typically, borrowers begin with an initial share ranging from 10% to 50% of the property's value. Over time, some homeowners opt to increase their share, eventually attaining full ownership of the property.

Forces Help to Buy in Birmingham

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Forces Help to Buy in Birmingham, is a government initiative aimed at supporting current and former members of the armed forces in buying a property. Under this scheme, servicemen and servicewomen can borrow up to 50% of their salary interest-free, which serves as their deposit for purchasing a home.

Lifetime ISA in Birmingham

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The Lifetime ISA, available in Birmingham, serves as a savings account specifically designed to help individuals save for their mortgage deposit. Here's how it works: for every savings contribution made by the account holder, the government provides a 25% top-up. With an annual savings cap of £4,000, one could receive a maximum government bonus of £1,000 towards their deposit. This leaves the account holder with £5,000 towards their mortgage deposit.

Right to Buy in Birmingham

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Right to Buy in Birmingham presents an opportunity for council tenants to purchase their council house, often without requiring a deposit. However, it's important to note that this scheme entails stringent lending criteria. Therefore, it is advisable to seek advice from a mortgage advisor in Birmingham to navigate through the process smoothly.

Free Mortgage Guides & Birminghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

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