• iconNews
  • videos
  • entertainment
  • Home
  • News
    • UK News
    • US News
    • Australia
    • Ireland
    • World News
    • Weird News
    • Viral News
    • Sport
    • Technology
    • Science
    • True Crime
    • Travel
  • Entertainment
    • Celebrity
    • TV & Film
    • Netflix
    • Music
    • Gaming
    • TikTok
  • LAD Originals
    • Say Maaate to a Mate
    • Daily Ladness
    • Lad Files
    • UOKM8?
    • FreeToBe
    • Extinct
    • Citizen Reef
  • Advertise
  • Terms
  • Privacy & Cookies
  • LADbible Group
  • UNILAD
  • SPORTbible
  • GAMINGbible
  • Tyla
  • UNILAD Tech
  • FOODbible
  • License Our Content
  • About Us & Contact
  • Jobs
  • Latest
  • Topics A-Z
  • Authors
Facebook
Instagram
X
Threads
Snapchat
TikTok
YouTube

LAD Entertainment

YouTube

LAD Stories

Submit Your Content
Brits given deadline for mortgage scheme where you need just a 5% deposit to buy a house

Home> News> UK News

Updated 16:34 21 Aug 2024 GMT+1Published 16:33 21 Aug 2024 GMT+1

Brits given deadline for mortgage scheme where you need just a 5% deposit to buy a house

The mortgage scheme is vital for helping people get on the housing ladder, but there are down sides

Joe Harker

Joe Harker

Featured Image Credit: Getty Stock Images

Topics: UK News, Money, Home, Property

Joe Harker
Joe Harker

Joe graduated from the University of Salford with a degree in Journalism and worked for Reach before joining the LADbible Group. When not writing he enjoys the nerdier things in life like painting wargaming miniatures and chatting with other nerds on the internet. He's also spent a few years coaching fencing. Contact him via [email protected]

X

@MrJoeHarker

Advert

Advert

Advert

Brits who want to get on the property ladder but don't have the sort of money needed to buy a house have a limited time to take advantage of a scheme which lets them put up a deposit of just five percent.

That house price rises have far outstripped wage growth in the UK is no surprise to Brits, who have found that their ability to afford a house has become increasingly hampered.

There are a number of schemes in place to try and help salve this wound, including a government-backed plan to offer mortgages where you only need a five percent deposit to buy a house.

On the plus side you could become the proud owner of a nice but not new home, as the scheme doesn't let you buy new builds with it, without blowing through all your money.

Advert

On the downside owing that much money means higher repayments, and the scheme isn't going to last for much longer anyway.

A mortgage with only five percent deposit? Great! But what about the repayments? (Getty Stock Photo)
A mortgage with only five percent deposit? Great! But what about the repayments? (Getty Stock Photo)

The deadline for this thing is 30 June, 2025, so you've already got less than a year to take advantage of the deal if it sounds to your liking.

There's a bunch of rules about what properties you can and can't buy, as it can't be a new build and can't be worth more than £600,000 when you buy the place.

It has to be your main residential home in the UK, and it'll need to be a repayment mortgage and not an interest-only one which you get.

Advert

The financial boffins over at moneysavingexpert.com have pointed out that the scheme which expires next year is better for lenders but not borrowers.

The site said that the point of the scheme was to get lenders offering more 95 percent mortgages, not to create special versions of those deals that are sweeter for the buyers.

The deadline on these mortgages is 30 June, 2025. You've got less than a year to get one if you want it. (Getty Stock Photo)
The deadline on these mortgages is 30 June, 2025. You've got less than a year to get one if you want it. (Getty Stock Photo)

Part of the scheme is that your deposit is at least five percent and at most nine percent, while Money Saving Expert notes that repayment rates 'tend to be MUCH higher' until you get to a 10 percent deposit.

They advised Brits looking to buy homes that the thresholds for repayment rates tended to get better at 90 percent, 80 percent, 75 percent and 60 percent.

Advert

Their advice to buyers looking for a five percent deposit is to see if they can't push it to 10 percent to take advantage of the lower repayments.

Other offers that give you something similar are available, like the scheme that can get you buying a house with a deposit of as little as £5,000.

This would be an offer for first time buyers, but once again the perils of having a small deposit and a big mortgage would be something to contend with.

Choose your content:

11 hours ago
12 hours ago
15 hours ago
  • 11 hours ago

    Elon Musk urges release of Epstein files weeks after accusing Trump of being involved in fiery X rant

    Musk made a bombshell claim about his former 'first buddy'

    News
  • 12 hours ago

    Arne Slot releases emotional statement after Diogo Jota tragically dies aged 28

    The Liverpool forward and his brother died this morning

    News
  • 12 hours ago

    Mum says picture of her son at nursery saved his life after camera flash revealed rare disease

    Laura Davies, from Wales, says she would have 'never known' without the photo

    News
  • 15 hours ago

    Brit, 29, who fell ill moments after getting tattoo on hen do fighting for life in coma

    Poppy-Mae Crutchley began to feel unwell 'instantly' after she got the inking in the Spanish party hotspot

    News
  • How Brits can qualify for mortgage scheme where you need just £5,000 deposit to buy a house
  • Pros and cons of 100% mortgage that requires no deposit as product launches in UK today
  • New 100% mortgage deal that doesn’t require a deposit launches in UK tomorrow
  • Biggest mistakes people make that could stop them getting Barclays 0% deposit mortgage