Government Mortgage Guarantee scheme extended

The Mortgage Guarantee Scheme will be extended until the end of June 2025, as announced in the autumn statement.

Launched in April 2021, the scheme helps to improve the availability of 95% mortgages. It works by insuring lenders against some of the financial risks on 91% to 95% of Loan To Value (LTV) mortgages. Many high street lenders participate in the scheme, such as Santander, NatWest, Nationwide, Barclays, and HSBC.

“The extension of the Mortgage Guarantee scheme will be helpful for first-time buyers coming into the market without huge savings or family assistance.”

Andrew Fagg, Mortgage and Protection Advisor, Davenport.

Applicable to homes of up to £600,000, the scheme decreases the deposit needed on a mortgage, with 5% of the home value required. Successful in helping homebuyers to get onto the property ladder, by December 2022, it had already benefitted 24,000 households.

If you’re a first-time buyer thinking of applying for a 95% mortgage, we’d recommend seeking financial advice tailored to your needs. We’d be happy to introduce you to one of our trusted partners for an informal, over-the-phone chat to discuss your needs and requirements.

Sources:
Autumn_Statement_2023_Policy_Costings_-_Final.pdf (publishing.service.gov.uk)
Government extends Mortgage Guarantee Scheme – GOV.UK (www.gov.uk)