The timing is great for us It’s brought our dream of buying our first home that little bit closer
For first-time buyers Jade Sims, 31, and Michael Farrelly, 32, getting a 95pc mortgage will help them stop renting and secure their footing on the property ladder.
“The timing is great for us. It has taken some of the pressure off and given us something to look forward to,” Ms Sims said. “It’s brought our dream of securing our first home that little bit closer.”
The couple, who are engaged, want to settle down and start a family in a village location close to where they currently live in Marlborough, Wilts. They have a budget of around £250,000.
The goal of owning a home seemed to be slipping out of their reach last year during the pandemic. Mr Farrelly, a bricklayer, had to pause work at various points. “We had to dip into our savings throughout the crisis last year and it was really demotivating to see them going down, rather than up as we had originally planned,” said Ms Sims, a commercial planning manager.
Their efforts to get on the ladder were also stymied by the hardening market for first-time buyers, with risk-averse lenders pulling low deposit mortgages from the market.
As a result of the new mortgage guarantee scheme, Ms Sims and Mr Farrelly can buy a £250,000 home with a 5pc deposit of £12,500. Without the Government’s programme, they would have needed to save up a further £25,000 for an average first-time buyer deposit of 15pc, to put down £37,500.
The fact that the scheme is open to all properties, not just new-builds like in the previous version under the Help to Buy umbrella, is an added bonus. Ms Sims said. “We had our hearts set on holding out for the right first home, which for us would be an older cottage-style property. While the goal is to get on the property ladder, we would also like a first home with a bit of character and to a certain extent this ruled out the Help to Buy scheme and new-build homes.”