Government extends Mortgage Guarantee Scheme

By TMG | 13th January 2023

According to Gov.UK,The Mortgage Guarantee Scheme will be extended by a year to the end of December 2023, helping people with 5% deposits on to the property ladder.
What is the mortgage guarantee scheme?

The government’s mortgage guarantee scheme enables us to offer 95% mortgages for first-time buyers and people looking to move to a new home – as long as they have a deposit of between 5% and 9.99%. It’s available for buying a property that will be your only home, and you’ll need to submit your mortgage application to us by 31 December 2023.
Launched in April 2021, 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.

Chief Secretary to the Treasury, John Glen MP said:

“For hard-working families facing today’s challenging economic conditions, it’s right that we continue to help them secure their first home or move into their dream house.

Extending this scheme means thousands more have the chance to benefit, and supports the market as we navigate through these difficult times.”

The government has also continued to provide a range of other options to support home ownership and the wider housing sector. For example, the Help to Buy ISA and Lifetime ISA have collectively facilitated over 618,000 households get on to the property ladder.

Source:

HM Treasury,. (2022) Government extends Mortgage Guarantee Scheme. Available at:  https://www.gov.uk/government/news/government-extends-mortgage-guarantee-scheme (Accessed 13/01/2023)

Barclays,.(2023) Mortgage guarantee scheme up to 95%. Available at: mortgageshttps://www.barclays.co.uk/mortgages/help-to-buy/mortgage-guarantee-scheme/ (Accessed 13/01/2023)