Richmond residents looking to get onto the housing ladder can get a helping hand from a new government scheme.

The 95% mortgage scheme launched today (Monday, April 19), letting first time buyers or current homeowners secure a mortgage on a 5% deposit for home purchases up to £600,000.

It is now open for applications and will last until December 31 2022.

Under the initiative the government will offer lenders the guarantee they need to provide mortgages that cover the other 95%. Lenders include the banks Lloyds, Santander, Barclays, HSBC and NatWest.

The scheme has been welcomed by Richmond's mortgage specialists Greenacre Financial Services, who encourage more lenders to sign up and boost mortgage availability for buyers.

Greenacre managing director Greg Stanworth said: "Today's announcement brings many high street lenders back to the 95% market and is great news as it will create an environment for competitive interest rates and more options for homebuyers."

He added: "Many low-deposit mortgages disappeared from the market in the early days of the pandemic, as lenders became concerned about the potential for these borrowers to end up in negative equity if house prices were to fall in the tough economy.

"However, in recent months, house prices have been hitting record highs and lenders' confidence is also showing signs of returning."

Visit Greenacre's website for expert advice on your mortgage.

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