The mortgage guarantee scheme is a government initiative to help homebuyers with small deposits to get on – or up – the property ladder.
The new scheme, launched in April 2021, is designed to encourage lenders to offer 95% loan to value (ltv) mortgages for properties worth up to £600,000.
In this article, we explain:
How the scheme works and who it is for
Which banks and building societies are taking part
What rates you can expect
What is the new mortgage guarantee scheme?
As a result of the coronavirus pandemic, almost all the 95% ltv mortgages – seen as very risky loans by banks and building societies – were pulled from the market.
First-time buyers, without the Bank of Mum and Dad to tap into, have particularly struggled.
The new mortgage guarantee scheme, launched on 19 April 2021, will allow homebuyers with only a 5% deposit to buy a house up to the value of £600,000.