This article is from the source 'guardian' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.theguardian.com/money/2025/jun/07/uk-mortgage-guarantee-scheme-due-to-end-with-no-news-on-replacement

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
UK mortgage guarantee scheme due to end with no news on replacement UK mortgage guarantee scheme due to end with no news on replacement
(about 2 hours later)
More than 53,000 mortgages have been completed using scheme, which encourages lenders to offer up to 95% loansMore than 53,000 mortgages have been completed using scheme, which encourages lenders to offer up to 95% loans
100% mortgages are back – will they work for you?
A government scheme to encourage UK lenders to offer 95% mortgages is scheduled to end this month, with no word yet on when its replacement will be launched.A government scheme to encourage UK lenders to offer 95% mortgages is scheduled to end this month, with no word yet on when its replacement will be launched.
The mortgage guarantee scheme went live in April 2021 to help buyers with small deposits get on the property ladder.The mortgage guarantee scheme went live in April 2021 to help buyers with small deposits get on the property ladder.
It allows banks to buy a guarantee from the government on the slice of the mortgage between 80% and 95% of the property’s value. If a borrower gets into financial difficulty and their property is repossessed, the government will cover that portion of the lender’s losses.It allows banks to buy a guarantee from the government on the slice of the mortgage between 80% and 95% of the property’s value. If a borrower gets into financial difficulty and their property is repossessed, the government will cover that portion of the lender’s losses.
Not every lender offering 95% mortgages has used the scheme. However, between launch and the end of December 2024, more than 53,000 mortgages were completed using it, of which 86% were first-time-buyer purchases.Not every lender offering 95% mortgages has used the scheme. However, between launch and the end of December 2024, more than 53,000 mortgages were completed using it, of which 86% were first-time-buyer purchases.
The government said in February it would be launching “a new, permanent, comprehensive mortgage guarantee scheme” that would “open the door to home ownership for more young families and hard-working renters”. But at the time of writing no detailed information had been announced. The existing scheme is open to new home loans only until 30 June.The government said in February it would be launching “a new, permanent, comprehensive mortgage guarantee scheme” that would “open the door to home ownership for more young families and hard-working renters”. But at the time of writing no detailed information had been announced. The existing scheme is open to new home loans only until 30 June.
Ministers had said that by making the mortgage guarantee scheme permanent and comprehensive, “banks and building societies will have long-term confidence to continue offering low-deposit mortgages”.Ministers had said that by making the mortgage guarantee scheme permanent and comprehensive, “banks and building societies will have long-term confidence to continue offering low-deposit mortgages”.
Data issued last week showed the total value of the guarantees provided by the scheme was £1.6bn, while the overall value of the mortgages supported by it was £10.7bn. The mean value of a property bought or remortgaged via the scheme was £211,000.Data issued last week showed the total value of the guarantees provided by the scheme was £1.6bn, while the overall value of the mortgages supported by it was £10.7bn. The mean value of a property bought or remortgaged via the scheme was £211,000.