Launched in April 2021 the Mortgage Guarantee Scheme supports first-time buyers, who make up 85 per cent of scheme transactions, buy a home with a 5 per cent deposit. Under the scheme the Government offers lenders financial guarantees to provide mortgages that cover the other 95 per cent, subject to affordability checks, on a house worth up to £600,000.
The scheme has already helped over 24,000 households. It was originally planned to close at the end of this year but will now be extended until the end of 2023.
Since 2010 more than 687,000 households have been helped into home ownership through Government schemes. The mortgage guarantee has helped over 24,000 households, as of November 2022, secure the keys to a new home with a deposit as small as 5 per cent.
To also support people to get onto the property ladder the Government has increased the level where first-time buyers start paying stamp duty from £300,000 to £425,000. Further first-time buyers can get relief on properties costing up to £625,000, as opposed to £500,000 previously. Both of these measures are time-limited to April 2025.
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