Official announcement: From today on, you can apply for a 5% down payment (95% loan plan) for buying a house in the UK. See here for details!

5% down payment to buy a house, the 95% mortgage guarantee scheme was officially launched today!

Just today, all British buyers are extremely concerned about the 5% down payment to buy a house information announced in the British government website!

To elaborate on the British monarch for everyone to draw a focus, this can borrow up to 95% to buy a house (I. E. The minimum can be 5% down payment to buy a house) plan, I.

They are referred to as 5% down payment plan for short:

Low-deposit mortgage scheme or 95% mortgage scheme

In this way, when you apply to the bank, you will know the name of the plan, which is convenient for communication.

Who can use this 5% down payment plan and what are the conditions and restrictions? Please elaborate on the key points for everyone to explain!

01 Introduction to 5% Down Payment Plan

In short, starting from today (April 19), first-time buyers or existing homeowners (current homeowners) will be able to get a mortgage on a 5% down payment to buy a house of up to £ 600,000.

In other words, first-time buyers or self-employed buyers will then be able to take up to 95% of loans.

The plan is intended as a temporary measure, and it will accept mortgage applications for the plan between April 2021 and December 2022.

As shown in the picture above, the down payment for property 5% from 200,000 pounds to 600,000 pounds (about 1.82 million yuan to 5.46 million yuan) is only 10,000 pounds to 30,000 pounds (about 91,000 yuan to 273,000 yuan).

02 Who can apply for this plan?

As stated above: first-time buyers home moves with a small deposit (home moves with a small deposit available)

However, lender banks will still conduct checks on the affordability of UK home purchase loan applicants. For anyone who is unemployed or whose income is unstable, it may be difficult to obtain loans.

This plan is aimed at people working in the UK (Chinese can also work in the UK) and is usually not suitable for overseas buyers.

Can overseas buyers buy a house if they cannot use the plan? How much is the down payment? Can you also borrow?

The answer is: non-British citizens can buy houses in the UK. Many parents, students and investors buy houses in the UK even if they are not in the UK. Liu international (UK) will assist in the whole process, complete all the purchase process, rent collection & appreciation. It's usually a 10% down payment.

Overseas buyers can also apply for loans.

If you have any questions, you can add micro signal consultation: liuinternationalUK

03 Does the plan impose restrictions on home purchases?

It is especially important to note that the purchase price must be 600,000 pounds or less.

It can be used to buy new or second-hand homes.

Emphasize once, not applicable to second-home buyers or buyers who buy and rent.

04 Which banks can provide this loan?

Banks that can provide loans to 95% include:

Lloyds

Santander (Santander)

Barclays (Barclays)

HSBC Bank (HSBC)

National Westminster Bank (NatWest)

Several of the banks above began offering loan products this week (counting on the UK post).

Virgin Money and will provide loan products next month.

However, some banks, such as Halifax, part of Lloyds Banking Group, and Barclays, these loan products will not apply to new properties.

05 Is the loan interest of the program high?

For two-year fixed-rate deals, some new mortgage rates are close to 4%. For example, with NatWest Bank's new 95% mortgage, the interest rate will start from 3.9%.

The head of mortgage lending at NatWest Bank, Lloyd Cochran, told the BBC: "This reflects the additional risk that banks are taking on. I think it's a pretty competitive interest rate for customers in the long run."

"One of the things we have to do is make sure customers can afford that rate. We also ensure that if interest rates rise, customers can afford the loan."

however, analysts said that for the 10% that can increase the down payment for a house, the interest rate may be greatly reduced, up to 0.75 per cent point.

In detail, the British monarch believes that if you can give a more down payment, you should give more so that the interest rate can be lower.

06 How do you know how much you can borrow?

Generally speaking, loan applicants working in the UK: the loan amount is generally 4-5 times the salary.

If you have any questions, you can add micro signal consultation: liuinternationalUK

07 More about the plan

The government will give lenders the option to buy the maximum mortgage guarantee. In other words, if the assets are recovered, the government will compensate the mortgage part of the lender's net loss.

The guarantee will apply to 80% of the purchase value of the secured property.

After the mortgage is created, the guarantee is valid for a maximum of 7 years, and there is evidence that the loan is unlikely to default after this period.

If you have any questions, you can add micro signal consultation: liuinternationalUK

08 What other preferential policies do you have in the UK?

There are several policies to facilitate buying a house:

95% loan to buy a house (5% down payment to buy a house)

Help to Buy policy (H2B)

Shared Ownership

First Home plan (First suite plan)

The plan will support a new generation to realize the housing dream, enabling more families to obtain mortgage loans without the need for large deposits.