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Can I Get a Mortgage in Grimsby With a 5% Deposit?

Accumulating a deposit stands out as one of the most challenging aspects of entering the property market, especially for first time buyers in Grimsby.

The landscape of house prices has evolved significantly over the past two decades, consistently on the rise.

Naturally, this upward trajectory in house prices translates to an increase in the minimum deposit required for securing a mortgage.

So, what is the required deposit for a mortgage?

Can you get a mortgage with a 5% deposit in Grimsby?

Typically, lenders stipulate a minimum deposit of 5%. In practical terms, a 5% deposit equates to 5% of the property’s value. For instance, if you are eyeing a property valued at £200,000, your deposit would need to be £10,000.

As mortgage brokers in Grimsby, our role involves evaluating your income and affordability to ascertain whether a mortgage with a 5% deposit aligns with your financial situation or if a higher deposit may be necessary.

Can you get a mortgage with a 5% deposit with bad credit in Grimsby?

The ability to secure a mortgage with a 5% deposit can be influenced by the duration of your bad credit history. Individuals with a less-than-ideal credit record may find that some lenders require a higher deposit, ranging from 10% to 15% of the property price.

Are there any schemes that can help me buy a property in Grimsby?

In 2013, the government introduced various government schemes, designed to help individuals in realising their homeownership aspirations by providing financial aid.

Various schemes exist, each distinct from the others. Here are some of the most popular:

Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme, launched in 2021 and scheduled to run until 30 June 2025, empowers first time buyers in Grimsby to secure a 95% mortgage, requiring only a 5% deposit.

Exploring this scheme might enhance your chances of obtaining a mortgage if you are a first time buyer in Grimsby.

Even after the scheme concludes, securing a mortgage with a 5% deposit remains a possibility, contingent on your creditworthiness and affordability.

Shared Ownership Scheme

Shared Ownership in Grimsby offers a unique opportunity for individuals to both buy and rent a property, presenting an affordable route to homeownership.

Under this scheme, aspiring homeowners purchase a share of the property, typically ranging from 25% to 75%, and pay rent for the remaining portion.

Over time, individuals can increase their share through “staircasing,” gradually progressing towards full ownership.

Lifetime ISA

The Lifetime ISA, while not a traditional scheme, is a government-led initiative aiding first-time buyers in saving for their deposit. This tax-free savings account caters to individuals aged 18 to 40, helping them in their quest to buy their first home.

Contributors can deposit up to £4,000 annually, with the government adding a 25% bonus (maximum £1,000) to facilitate property purchases. This incentive serves as a valuable boost for those saving towards their initial home purchase, making homeownership more financially attainable.

Learn More About Different Mortgage Schemes

To explore these schemes further, visit for a comprehensive list. Alternatively, reach out to our mortgage advisors in Grimsby to discuss your options.

In certain instances, a scheme may not be imperative to secure a mortgage with a 5% deposit; it could already be financially viable.

If you are a first time buyer in Grimsby, start your mortgage journey by booking a free appointment online today!

Date Last Edited: February 20, 2024

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