Call us today: 01722 322683


Government extends Mortgage Guarantee Scheme

In the 2023 Autumn Statement, it was announced that the Government will extend the Mortgage Guarantee Scheme. It was initially due to end in 2023, but it will run an additional 18 months until the end of June 2025. Adam Nanson, Mortgage Broker at Your Mortgage Expert in Salisbury talks about what this means for home buyers.Government extends mortgage guarantee scheme

What is the Mortgage Guarantee Scheme?

“It’s welcome news the Government has extended the Mortgage Guarantee deadline. Especially now that the Help to Buy Scheme has come to an end.

“The scheme was initially launched during the Covid-19 Pandemic amid concerns around the economy and the wider housing market.

“It was designed to encourage more lenders to offer products at a 95% Loan to Value by taking on some of the risk from the lender. If house prices were to fall – low deposit houses are more likely to fall into negative equity so are seen as more risky for lenders. Under the Mortgage Guarantee Scheme, the Government agrees to compensate the lender for a portion of their losses in the event of repossession.”

Who is the Mortgage Guarantee Scheme for?

“The scheme is designed to help purchases of residential properties. This means that current homeowners and First Time Buyers can take advantage. However, it can not be used to buy second homes or Buy to Let properties.

“As always, the lender will go through standard affordability checks. You’ll need to apply for a repayment (not interest-only) mortgage. And you will need to have a 5% deposit.

“The Mortgage Guarantee Scheme isn’t for everyone. Your first step should be to speak to a broker like us who can give you advice on the Mortgage Guarantee Scheme.

“There are other schemes available such as the Deposit Unlock Scheme and the Shared Ownership Scheme which might be more suited to your circumstances. We have experience helping clients with all these schemes and will take the time to understand what is right for you.”

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.

The information contained within this article was correct at the time of publication. It is intended for information only and should not be used as a basis for purchasing any products. We cannot be held responsible for something that was correct at the time but subsequently changes or goes out of date. For further information, contact Your Mortgage Expert on 01722 322683.

Contact us

"*" indicates required fields

Monday to Friday: 9am – 5.00pm, Saturday and Sunday: Closed

We will use your name, email address and contact number (‘personal information’) to contact you about the services you have requested or respond to an enquiry you have submitted, which will require us to share your personal information with financial institutions who can assist in the provision of financial services to you including product providers, lenders, banks, insurers, fund managers, platform providers and third party para-planners. For further information on how your information is used, including disclosure to third parties, how we maintain security of your information and your rights in relation to the information we hold about you, please see our Privacy Policy:

Your Mortgage Expert is a trading name of Your Mortgage Expert Limited which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.

Registered Office Address: 18 New Canal, Salisbury, England, SP1 2AQ. Registered in England Number: 08924507.

Sorry to see you go

Please note, by clicking on the link you will be departing from the regulated site of Your Mortgage Expert Ltd. Neither Your Mortgage Expert Ltd nor Mortgage Advice Bureau are responsible for the accuracy of the information contained within the non-regulated site.