The areas of London to buy a home on £ 20,000 security deposit

Since Chancellor Rishi Sunak announced that the government was introducing a mortgage guarantee system to help first-time buyers, mortgage brokers have seen an increase in internet traffic and inquiries.

This emerges from the leading real estate portal Rightmove. The new program, which will be launched in April, will allow first-time buyers and existing homeowners to purchase up to £ 600,000 worth of homes with as little as five percent deposit.

With an average asking price in the capital of £ 621,886, many properties in London will be above the threshold proposed by the system.

Rightmove has compiled a list of areas where the average five percent deposit in London will be less than £ 20,000.

The list includes desirable locations such as South Norwood (average price £ 358,943), Northolt (average price £ 381,957) and Woolwich (average price £ 384,743).

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The system works because the government is committed to repaying part of their losses to lenders if you, the buyer, default on your mortgage for any reason.

In return for this guarantee, lenders must sell mortgages up to 95 percent of the home price in order for you, the borrower, to post a five percent security deposit

For many first-time buyers, this is a potential trailblazer as many mortgages were 95 percent unavailable over the past year.

Below is a list of the areas where the average five percent deposit is under £ 20,000.

Are you hoping to take advantage of the mortgage guarantee system? Let us know in the comments.