Ways to buy
learn about the new

Mortgage guarantee scheme

It is now possible to get a 95% mortgage with the new Government backed mortgage guarantee scheme.

New homes at Half Penny Meadows

The new mortgage guarantee scheme

The new Government backed mortgage guarantee scheme enables buyers with as little as 5% deposit to buy a home.

Under the scheme, the government will offer incentives to lenders, which will encourage them to offer 95% mortgages.

The maximum purchase price of the property you could buy is up to £600,000.

Downham Gosford and Milldale at Hayfield Park

With just 5% deposit

The mortgage guarantee scheme is not yet available on new build homes. However, the long running and hugely popular Help to Buy scheme is still available to first time buyers, and is available exclusively on new build homes. 

With Help to Buy, first time buyers could buy a home with just 5% deposit and a 20% interest free equity loan. 

Couple smiling in kitchen

Who will be eligible for the Mortgage Guarantee Scheme?

The scheme is designed to help creditworthy households struggling to save for the higher mortgage deposits required by lenders in the current environment. The scheme is not yet available on new build homes. 

For this reason, a mortgage eligible for a guarantee under the scheme will need to:

  • be a residential mortgage (not second homes) and not buy-to-let be taken out by an individual or individuals rather than an incorporated company
  • be on a property in the UK with purchase value of £600,000 or less
  • have a loan-to-value of between 91 per cent and 95 per cent
  • be originated between the dates specified by the scheme
  • be a repayment mortgage and not interest-only
  • and meet standard requirement in terms of the assessment of the borrower’s ability to pay the mortgage, for example a loan-to-income and credit score test