Blog Post

Bank of England eases rules on borrowing and 95% mortgages still available until December 2022.

Publish Date: 17 August 2022

By Jade Shrubsole

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Bank of England eases rules on borrowing and 95% mortgages still available until December 2022.

Further reading

Integration of Viewber into EIG’s auctioneer management system (AMS)

How will the rise in interest rates affect auctions?

Bank of England eases rules on borrowing and 95% mortgages still available until December 2022.

The government backed scheme was introduced to help more people in rented accommodation find the ability to buy with lenders being allowed to accept buyers with a 5% deposit. The scheme is set to end December 2022 but could be up for review near the end date. Figures show that the demand for home ownership had soared during lockdown with nearly 80% of private renters now saving for a deposit.

The Bank of England have also announced in June’22 that they are easing the rules for borrowing by scrapping the affordability test. A test which forced lenders to calculate whether potential borrowers would be able to manage financially if interest rates did climb up to 3%.

Can I use the 5% deposit scheme when buying at auction?

The answer is yes, however there is still certain criteria that must be met. Not all auction properties are eligible for mortgage finance due to them not meeting a certain standard of living. So, it is important to bear that in mind and ensure you have the correct funding in place before you bid.

 

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