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The Mortgage Guarantee Scheme in Derby is a government initiative designed to support individuals looking to buy a home with a smaller deposit.
It helps homebuyers access mortgages with deposits as low as 5%, making homeownership more attainable.
Open to both first-time buyers and existing homeowners, this scheme encourages lenders to offer 95% loan-to-value mortgages by providing a government-backed guarantee.
It’s worth exploring the scheme with the guidance of a trusted mortgage broker in Derby who can assess your eligibility.
Under the Mortgage Guarantee Scheme in Derby, lenders receive a government guarantee on a portion of the mortgage if the borrower defaults.
This reduces the risk for lenders, enabling them to offer high loan-to-value mortgages. Borrowers can apply for a mortgage with just a 5% deposit, provided they meet affordability and credit requirements.
The scheme is available for properties valued up to £600,000 and applies to repayment mortgages only.
A mortgage advisor in Derby can help you navigate the application process, ensuring you understand the scheme’s requirements and find the most suitable deal for your circumstances.
Eligibility for the Mortgage Guarantee Scheme in Derby depends on meeting certain criteria.
You must be purchasing a residential property in the UK valued at no more than £600,000, and the mortgage must be on a repayment basis rather than interest-only.
The scheme is open to both first time buyers and home movers, and your lender will conduct affordability checks to ensure you can manage repayments.
The Mortgage Guarantee Scheme in Derby is available to both first time buyers and home movers looking to purchase a property within the UK.
To qualify, the property must be residential and valued at £600,000 or less. It is not available for buy to let or second homes.
If you’re unsure whether you meet the criteria, exploring your options with a knowledgeable mortgage broker in Derby can provide clarity and guidance.
Lenders offering mortgages under the Mortgage Guarantee Scheme in Derby will assess your credit score and financial history to determine affordability.
Each lender sets its own requirements, and a good credit score improves your chances of approval.
A mortgage broker in Derby can help identify lenders participating in the scheme and recommend suitable options based on your credit profile.
One of the key benefits of the Mortgage Guarantee Scheme in Derby is that it allows you to secure a mortgage with a deposit as low as 5% of the property’s value.
For instance, a £200,000 home would require a minimum deposit of £10,000.
This makes it an attractive option for those with limited savings.
Yes, the Mortgage Guarantee Scheme in Derby can be used to purchase new-build homes, provided the property meets the scheme’s eligibility criteria, such as being valued at £600,000 or below.
Not all lenders offer this option for new-builds, so working with a mortgage broker in Derby can help you find lenders that support new-build purchases under the scheme.
The scheme is not available for buy to let properties or holiday homes.
It is specifically designed to assist those purchasing a residential property to live in.
If you’re seeking a mortgage for a buy to let property, getting mortgage advice in Derby can guide you towards other suitable products.
There are no strict income caps to use the Mortgage Guarantee Scheme in Derby.
Instead, lenders will focus on affordability checks, ensuring your income and outgoings allow you to manage the repayments comfortably.
No, the Mortgage Guarantee Scheme in Derby is only available for properties that will serve as your primary residence.
Second homes, holiday properties, or investment properties are not eligible under this scheme.
The scheme provides a guarantee to the lender, not the borrower, meaning you remain fully responsible for making your repayments.
If you experience financial difficulties, it’s vital to speak with your lender early.
The scheme’s availability depends on government decisions, but it has been extended multiple times.
To take advantage of the Mortgage Guarantee Scheme in Derby, it’s advisable to act sooner rather than later and seek guidance from a mortgage broker in Derby.
While it’s possible to combine the Mortgage Guarantee Scheme in Derby with savings initiatives like a Lifetime ISA, it cannot be used alongside other home-buying schemes such as Shared Ownership or Help to Buy.
Speaking to a mortgage advisor in Derby can clarify what combinations are possible based on your financial situation.
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Anonymous
Really good service till the end, making sure everything was finalised smoothly. Will definitely use again when needed.
1 month ago
Anonymous
DIna was my mortgage broker and was so friendly and non-judgemental of my circs. I was wanting to buy an ex out the property and pay off some debt - she got me an offer within days. I had used free mortgage advice companies who hasn’t managed...
3 months ago
Liz
I dealt with Dinah who is the friendliest non-judgemental advisor I have ever dealt with . My case wasn’t that straight forward, but within days I had an offer. I have used well known free advice companies before, but didn’t get anywhere with...
3 months ago
Anonymous
They were quick to respond and maintained great communication throughout the process. Emails were answered promptly, making the entire experience smooth and stress-free. Highly recommended for anyone seeking a reliable and responsive mortgage broker!
3 months ago
Donna
Amazing service would highly recommend A+++
10 months ago
Anonymous
Quite helpful and fast in dealing with the proceedings of the mortgage application.
10 months ago
Arron
Good recommendation for 1st time buyers. Made whole process easy and straightforward.
1 year ago
Kudakwashe
Very good 👍
1 year ago
Sarah
I can’t believe the service we have had and we can’t recommend them enough, Matt and the team are amazing. We have had several mortgage offers through them but the houses we have bought have fallen through but nothing has been too much trouble...
1 year ago
Carol
Friendly efficient service, took their time to explain the procedure etc, I would definitely recommend them.
1 week ago
Joshua
Leo is always a pleasure to talk to. Very friendly and knowledgeable, and allows us to ask questions, no matter if we’ve asked before orbits really obvious
1 month ago
Adam
Thank you to Wayne and the team at UK Moneyman, Derby. We were first time buyers, both with adverse credit history and one with sporadic income from agency work. I was finding the whole process of applying for mortgages to be quite stressful and...
2 years ago
Arran
The team over at Derbymoneyman have been incredibly helpful in helping me understand the process of buying a house. A friendly and welcoming team who do all they can to help. Definitely recommended, you feel like the team is invested in helping you.
2 years ago
Gurjeet
Really helpful and clear.
9 months ago
Gemma
From first discussions with Tom to being passed over to Lyndsey, the whole process was easy and seamless. Everyone I have dealt with at Moneyman have been really helpful and friendly, which has helped take the stress out of applying for a...
10 months ago
Matthew
Jenny has been extremely helpful throughout the process and resolved any issues quickly. Thanks!
11 months ago
Susan
Very good service over the moon Wayne and Megan no there stuff
1 year ago
Dean
4 weeks and got my offer very good service from Wayne and Megan can not fault them
1 year ago
Chantelle
This company has helped get a mortgage, when we didn't think we could get one the first time, and we have continued to use them the second time and will reuse them again. They are professional and Friendly and communication is fantastic.
2 years ago
Anonymous
Great service
1 year ago
Book a free consultation to discuss your eligibility for the Mortgage Guarantee Scheme in Derby.
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Our experts will assess your financial situation and guide you through the next steps.
Once we’ve assessed your affordability and requirements, we’ll obtain an Agreement in Principle for you, often within 24 hours.
This document demonstrates to sellers and estate agents that you’re a serious buyer and financially prepared to proceed.
Using our expertise, we’ll search through thousands of mortgage products to find the most suitable deal for you.
Whether it’s through the Mortgage Guarantee Scheme in Derby or another tailored solution, we’ll recommend options that fit your financial circumstances and long-term goals.
Once you’re happy with our recommendation, we’ll handle the application process for you.
Our team will submit your mortgage application, liaise with the lender, and keep you updated at every stage.
Our team provides personalised mortgage advice in Derby tailored to your unique financial situation.
Whether you're a first time buyer or a homeowner, we ensure you receive the best guidance throughout your journey.
We know life can be busy, so we offer appointments that fit your schedule.
Speak with a mortgage advisor in Derby at a time that works for you, including evenings and weekends.
As a trusted mortgage broker in Derby, we search through thousands of mortgage products to find the most suitable deal.
Our connections with a wide range of lenders mean we can cater to all circumstances, including those who may find it challenging to secure a mortgage.
We’re here for you at every step of the process.
From your initial enquiry to the completion of your mortgage, our dedicated team provides ongoing support to make your experience as smooth and stress-free as possible.
To qualify for the Mortgage Guarantee Scheme in Derby, you must meet specific criteria.
The scheme is available for residential properties valued at £600,000 or less and applies only to repayment mortgages, not interest-only options.
Additionally, the property must serve as your primary residence, excluding second homes and buy to let properties.
Lenders will assess your financial situation thoroughly before approving a mortgage under the scheme. This includes reviewing your income, outgoings, debts, and overall financial stability.
A key consideration is whether the monthly repayments, which may be higher due to the scheme’s 95% loan-to-value ratio, fit comfortably within your budget.
If you’re unsure, a mortgage broker in Derby can help you understand affordability requirements and guide you through the assessment process.
The scheme’s appeal lies in allowing buyers to secure a mortgage with just a 5% deposit.
A higher loan-to-value ratio often comes with elevated interest rates, resulting in higher monthly repayments.
It’s important to weigh the benefits of a lower deposit against the potential long-term costs.
The Mortgage Guarantee Scheme in Derby covers a range of properties, including new builds, but excludes commercial and investment properties.
Not all lenders participate in the scheme, so finding one that suits your specific needs can be challenging.
A mortgage advisor in Derby like us, can help identify lenders offering this scheme and ensure the property you’re interested in qualifies under the guidelines.
Consider how this scheme aligns with your long-term financial goals.
While the 5% deposit makes homeownership more accessible, higher repayments may affect your ability to save or make overpayments.
Additionally, you might explore options to remortgage in the future for better rates.
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Derbymoneyman.com & Derbymoneyman 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: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© Derbymoneyman 2025.
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Derbymoneyman.com & Derbymoneyman 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: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© Derbymoneyman 2025.
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