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Mortgage Guarantee Scheme
in Manchester

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Mortgage Guarantee Scheme
in Manchester

The Mortgage Guarantee Scheme is a government-backed initiative that enables borrowers to take out a mortgage with just a 5% deposit.

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What is the Mortgage Guarantee Scheme in Manchester?

The Mortgage Guarantee Scheme is a government-backed initiative designed to help potential homeowners secure a mortgage with just a 5% deposit. This scheme aims to make homeownership more accessible.

Introduced in January 2021, the scheme is open to both first time buyers and home movers in Manchester. By reducing the required deposit, it enhances mortgage affordability, making it easier for a broader range of people to step onto the property ladder or move to a new home.

The Mortgage Guarantee Scheme has assisted thousands of individuals in becoming homeowners in Manchester. This has provided a significant boost to the housing market, particularly benefiting those who may have struggled to save for a larger deposit.

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Mortgage Guarantee Scheme<br>in Manchester

How does the Mortgage Guarantee Scheme work?

The Mortgage Guarantee Scheme allows you to purchase a home with a 5% deposit, making homeownership more accessible. Here’s a breakdown of how the scheme works:

Firstly, you’ll need to save a deposit equivalent to 5% of the property’s value. For instance, if you’re looking at a property priced at £200,000, you would need a £10,000 deposit.

Once you have your 5% deposit, you can apply for a 95% loan-to-value (LTV) mortgage through the Mortgage Guarantee Scheme. This application can be made through your bank or a mortgage broker in Manchester.

Mortgage Guarantee Scheme Eligibility in Manchester

To qualify for the Mortgage Guarantee Scheme in Manchester, applicants must meet specific criteria:

  • Property Value: The property must be valued at £600,000 or less.
  • Property Type: The mortgage must be for a residential property; buy to lets and second homes are excluded.
  • Applicants: Only individual applicants are eligible, not companies.
  • Affordability: Applicants must pass the lender’s standard affordability checks.

Meeting these requirements can help you take advantage of the scheme, making homeownership more attainable with a lower deposit.

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Mortgage Guarantee Scheme FAQs in Manchester

How to apply for government Mortgage Guarantee Scheme in Manchester?

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Applying for the government-backed Mortgage Guarantee Scheme in Manchester can be a straightforward process if you follow these steps:

  1. Save Your Deposit: Ensure you have a 5% deposit saved based on the property’s price. For example, a £200,000 property would require a £10,000 deposit.
  2. Check Eligibility: Verify that you meet the scheme’s eligibility criteria, including the property being valued at £600,000 or less and intended for residential use.
  3. Research Lenders: Look for participating lenders offering 95% loan-to-value (LTV) mortgages under the scheme. Many major banks and mortgage brokers in Manchester are part of this initiative (your mortgage broker in Manchetser will help you with this).
  4. Speak to a Mortgage Advisor: Consulting with a mortgage advisor in Manchester can be invaluable. At Manchestermoneyman, our team can guide you through the process, helping you understand your options and find the best deals. Your mortgage advisor in Manchester can access 1000s of mortgage products, ensuring you get a competitive rate.
  5. Prepare Your Documents: Gather all necessary documents, such as proof of income, employment history, and credit reports. Having these ready can speed up the application process.
  6. Submit Your Application: Once your documents are in order, submit your mortgage application through your chosen lender or mortgage broker in Manchester. They will process your application and assess your eligibility based on their criteria.
  7. Complete Affordability Checks: The lender will conduct standard affordability checks to ensure you can manage the mortgage repayments.
  8. Await Approval: If your application is successful, you’ll receive a mortgage offer. Review the terms carefully before proceeding.

By following these steps, you can take advantage of the Mortgage Guarantee Scheme, making your journey to homeownership in Manchester smoother and more achievable. For personalised assistance, reach out to our team at Manchestermoneyman, and let us help you secure the best mortgage deal for your needs.

How much can I borrow with the Mortgage Guarantee Scheme in Manchester?

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The amount you can borrow with the Mortgage Guarantee Scheme in Manchester depends on your income and the lender’s criteria.

Usually, it is 4 to 4.5 times your annual income that you can borrow. For example, an income of £50,000 might allow borrowing between £200,000 and £225,000. Here you would need a 5% deposit, so a £10,000 deposit would be needed for a £200,000 property.

Our mortgage advisors in Manchester will help you understand your borrowing potential and find the best deals from thousands of options. Contact us to explore your options and move closer to owning your home in Manchester.

How does the Mortgage Guarantee Scheme in Manchester help?

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The Mortgage Guarantee Scheme helps by enabling buyers to secure a mortgage with just a 5% deposit, making homeownership more accessible.

It provides a government-backed guarantee to lenders, encouraging them to offer 95% loan-to-value (LTV) mortgages. This support is beneficial for both first time buyers in Manchester and those looking at moving home in Manchester, allowing a wider range of people to purchase a home.

Additionally, the scheme can lead to more competitive mortgage rates compared to other high LTV products. Our mortgage advisors in Manchester can help you navigate this scheme and find the best mortgage deals available.

Is a 5% mortgage in Manchester hard to get?

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Securing a 5% mortgage in Manchester can be more challenging than mortgages requiring larger deposits, but the Mortgage Guarantee Scheme makes it more accessible.

This scheme encourages lenders to offer 95% loan-to-value (LTV) mortgages by providing a government-backed guarantee, which reduces the risk for lenders. While it is still important to have a good credit history and pass affordability checks, the scheme has made it easier for both first time buyers and home movers to obtain a mortgage with a smaller deposit.

Getting mortgage advice in Manchester can prove extremely beneficial when getting a mortgage with a 5% deposit. You need to find a 95% LTV product that matches your personal and financial situation, which is something that we can help with.

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Our Simple Mortgage Process

Free Mortgage Appointment

Step 1

Begin with a free mortgage appointment with one of our experienced advisors. During this meeting, we will assess your financial situation, discuss your mortgage options, and answer any questions you might have. This initial step ensures you are well-informed and prepared to proceed.

Agreement in Principle

Step 2

Next, we will help you secure a mortgage agreement in principle (AIP). This document shows how much you can potentially borrow, giving you a clearer idea of your budget. An AIP strengthens your position as a serious buyer when you start house hunting.

Mortgage Application

Step 3

Once you find your ideal property, we will assist you in submitting your mortgage application. We handle the paperwork and liaise with the lender on your behalf, ensuring a smooth and efficient process. Our goal is to get you the best mortgage deal available.


Step 4

The final step is completion, where your mortgage funds are transferred, and you receive the keys to your new home. Our team will guide you through the final checks and ensure all legal requirements are met. Congratulations, you are now a homeowner!

Reasons to Choose us

Free Mortgage Appointment

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Booking your free mortgage appointment is nice and easy. Simply book online or give our team a call and we can arrange a date and time with you.

During this appointment, you will meet with one of our mortgage advisors in Manchester who will take the time to understand your financial situation and mortgage needs. We will discuss your options, answer your questions, and provide tailored advice to help you move forward confidently. Our goal is to make the mortgage process as straightforward and stress-free as possible for you.

1000s of Deals

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We have access to thousands of mortgage deals from a wide range of lenders, including exclusive products not available on the high street. This extensive selection allows us to find the perfect mortgage tailored to your unique circumstances.

Whether you're a first time buyer, home mover, or looking to remortgage, we are dedicated to finding the best deal to suit your needs and budget.

Our Service

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With over 20 years of experience in the mortgage industry, our team has the knowledge and expertise to guide you through every step of the mortgage process. We have helped thousands of customers achieve their homeownership dreams, providing personalised advice and support tailored to each client's needs.

Our extensive experience means we are well-versed in the complexities of the mortgage market, enabling us to navigate any challenges that may arise. You can trust us to provide reliable, professional advice and find the best mortgage solution for your unique situation.

7 days a Week

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We understand that your schedule can be hectic, which is why we offer our services seven days a week. Our flexible hours ensure that you can get the mortgage advice you need at a time that suits you best, even on weekends.

Whether you have questions, need assistance with your application, or want to discuss your mortgage options, our team is available every day to provide support and guidance. This commitment to accessibility means you can move forward with your mortgage journey without having to take time off work or rearrange your busy life.

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Common Mortgage Scenarios in Manchester

Working Out How Much You Can Borrow in Manchester

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The amount you can borrow for a mortgage in Manchester depends on several factors, primarily your income and the lender’s criteria.

Typically, lenders use a multiple of your annual income to determine your borrowing capacity, often ranging from 4 to 4.5 times your annual salary. For example, if you earn £50,000 per year, you might be able to borrow between £200,000 and £225,000.

Saving For a Mortgage Deposit in Manchester

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Saving for a mortgage deposit in Manchester is a crucial step towards homeownership. With the Mortgage Guarantee Scheme, you only need a 5% deposit, making it more accessible for many buyers. For example, to buy a £200,000 home, you would need to save £10,000.

Start by setting a realistic savings goal and creating a budget to track your expenses and identify areas where you can cut back. Consider setting up a dedicated savings account to keep your deposit funds separate and benefit from any interest earned.

Additionally, explore government savings schemes like the Lifetime ISA in Manchester, which can provide a 25% bonus on your savings, further boosting your deposit amount.

You’ve Had an Offer Accepted in Manchester

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This is an exciting milestone in your journey to homeownership. The next steps involve securing your mortgage, and the Mortgage Guarantee Scheme can play a pivotal role if you only have a 5% deposit.

First, contact your mortgage advisor in Manchester to finalise your mortgage application. At Manchestermoneyman, we will assist you in gathering all necessary documents and ensure your application is submitted promptly. With the Mortgage Guarantee Scheme in Manchester, you can apply for a 95% loan-to-value (LTV) mortgage, making the process more accessible.

Next, your lender will carry out a property valuation and conduct affordability checks. Once these are completed and your application is approved, you’ll receive a formal mortgage offer. It’s important to review the offer carefully with your advisor to ensure it meets your needs.

Finally, instruct a solicitor to handle the legal aspects of your property purchase. They will carry out necessary checks, prepare contracts, and arrange for the transfer of funds. Once all legalities are settled, you will complete the purchase, and the property will officially be yours.

Need an Agreement in Principle (AIP) in Manchester

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An Agreement in Principle (AIP) is a crucial step in the mortgage process, especially if you’re looking to buy a property in Manchester. An AIP gives you a clear idea of how much you can borrow, providing you with a budget to work within and showing sellers that you are a serious buyer.

To obtain an AIP, you will need to provide basic information about your income, outgoings, and credit history. At Manchestermoneyman, our team can help you through this process, ensuring all necessary information is accurately submitted to the lender.

The Mortgage Guarantee Scheme can enhance your AIP application if you have a 5% deposit. This scheme encourages lenders to offer 95% loan-to-value (LTV) mortgages, increasing your chances of securing an AIP and ultimately, a mortgage.

Once you have your AIP, you can confidently start house hunting, knowing your borrowing potential. Our experienced mortgage advisors in Manchester are here to assist you every step of the way, making the process smooth and straightforward.

Mortgage Guides & Manchestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Manchester, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

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