What Did The Previous Scheme Achieve?
The earlier scheme, which ran from April 2021 to March 2025 under the Conservative government, supported 56,389 mortgage completions. In the first quarter of 2025 alone, 3,180 mortgages were completed.
The scheme was open to first-time buyers (FTB), home movers and remortgagers, although the majority of purchases (around 86%) were by FTB’s. Overall, it helped facilitate £11.5 billion worth of loans, with the average property purchased costing £215,467.
This scheme made it possible for more people to get onto the property ladder, particularly those who might’ve struggled to meet larger deposit requirements.
How Does The Permanent Mortgage Guarantee Scheme Work?
The permanent Mortgage Guarantee Scheme allows lenders to offer 95% loan-to-value (LTV) mortgages to buyers who meet a specific criterion. This means that buyers can secure a mortgage with a smaller deposit than what would normally be required, making home ownership more accessible.
Who Is Eligible For This Scheme?
Eligible buyers include:
- First-time buyers (FTBs) looking to purchase their first home
- Home movers wanting to move without a large deposit
- Remortgagers who may be looking to switch deals
For many buyers, saving for a deposit is the biggest hurdle to homeownership. By providing a government-backed guarantee, the scheme reduces risk for lenders, who can then offer higher LTV mortgages more confidently. This not only helps buyers achieve their goals but also supports the wider housing market.
How Can We Help?
If you’re a first-time buyer, moving home, or looking to remortgage, the Mortgage Guarantee Scheme could be a game-changer. Our expert advisers can help you understand your options and guide you through the process to find a deal that works for you.
Get in touch today to see how we can help you access the right mortgage for your needs!
Sources:
https://www.mortgagestrategy.co.uk/news/govt-launches-permanent-mortgage-guarantee-scheme/
https://www.mortgagestrategy.co.uk/news/mortgage-guarantee-scheme-backs-11-5bn-of-loans/
Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay and early repayment charge to your existing lender if you remortgage.
