End of Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme officially ended in June 2025. The scheme was originally launched in 2021 with the aim of encouraging more lenders to offer a 95% Loan to Value. Initially, the scheme was extended until June 2025 and the Government hasn’t announced a replacement to this scheme. In this article, we look at what options are available now that we are at the end of the Mortgage Guarantee Scheme.
What was the Mortgage Guarantee scheme
The Mortgage Guarantee Scheme was designed to encourage more lenders to offer products at a 95% Loan to Value. The scheme allowed both first-time buyers and current homeowners to purchase properties up to a value of £600,000 with a 5% deposit.
Applicants were subject to the usual lender affordability checks. Uniquely, it offered lenders the option to utilise a government guarantee compensating them for a portion of their losses in the event of repossession.
Figures show that more than 53,000 mortgages were completed using the Mortgage Guarantee Scheme, of which 86% were First Time Buyers*.
What alternatives are available now the Mortgage Guarantee Scheme has ended?
In the absence of a new Mortgage Guarantee Scheme being launched by the Government there are some alternatives available to those who are struggling with affordability. These include:
- 100% mortgages – a few lenders have now launched 100% mortgage products. Some are only accessible through an exclusive panel of mortgage brokers like us. There are quite strict criteria for applying for these products but they may be welcome for those struggling to save a deposit.
- Shared Ownership – this offers you the chance to buy a share of between 25% and 75% of your home’s value and then pay rent on the remaining share. For this reason, it is often referred to as ‘part-rent, part buy’.
- Forces Help to Buy – If you are a member of the armed forces, there is a dedicated Forces Help to Buy scheme. The scheme is designed to help serving members of the armed forces get on the property ladder.
- Joint Borrower, Sole Proprietor (JBSP) Mortgage – A JBSP mortgage is a specialist type of lending to help people get on the property ladder. It enables home buyers to purchase a home with the assistance of a family member.
If you are interested in exploring any of these mortgage options further, we would advise you to speak to an experienced mortgage broker like us.
Not all lenders deal with all types of mortgages and some only offer products through mortgage brokers like us. With a more complicated application and also needing to use more specialist lenders experienced advice is essential.
We have regular contact with a wide range of lenders, some of whom you may not even know exist! With our help, you won’t have to search or contact each individual lender in order to compare the mortgage terms and rates; we’ll do all that for you.
If after reading about the end of the Mortgage Guarantee Scheme you are interested in having a no obligation chat about your mortgage, why not get in touch? We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
Simply call us on 01722 322683 or complete a contact us form on our website and tell us when it would be best to get back in touch with you.