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Martin Lewis: Money Saving Expert issues warning on deposits for new 5% mortgage scheme | Personal Finance | Finance

| UPDATED: 14:22, Thu, Mar 4, 2021 Link copied Make the most of your money by signing up to our newsletter for FREE now SUBSCRIBE Invalid email When you subscribe we will use the information you provide to send you these newsletters. Sometimes they ll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time. Martin Lewis appeared on ITV’s This Morning earlier today, providing important updates to Britons when it comes to the Budget. While the Money Saving Expert is set to interview the Chancellor later on this evening, he was on hand to break down some of the news from yesterday’s economic event. One particularly important point which piqued the interest of many people was the new mortgage scheme being developed by the Government.

Mortgage rates: When will 5% deposit and 95% mortgages be back?

Neil Weston, Principal of Scout Financial Services welcomed the announcement:  We are thrilled to see Government support for first time buyers included in the Chancellor’s Budget today. We have been calling for greater support for mortgage lenders in this space for a while now and action on this was promised by the PM back in October, so it’s great to finally see a plan in place. Whilst the availability of mortgages for 90% of the purchase price has improved recently, the market has remained restricted by tight lending criteria and the lack of high loan-to-value mortgages. More support for lenders to lend a higher percentage of the purchase price will no doubt be welcomed across the industry and by first time buyers. However, many first time buyers may find themselves in a tricky position where they will now have enough money saved for a deposit, but they are unable to secure a mortgage as a result of being furloughed.

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