Mortgage Guarantee Scheme backs

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Over 56,000 home loans have so far used the Mortgage Guarantee Scheme aimed at first-time buyers, which closed down after four years earlier this summer.  

The programme saw 56,389 loans completed under its support since it was launched in April 2021 to March of this year, with 86% of the take-up coming from FTBs. 

The value of loans supported by the scheme since launch is £11.5bn, while £1.7bn of guarantees have been extended under the programme, the latest Treasury data shows.

There were 3,180 completions in the first three months of this year. 

The mean value of a property purchased or remortgaged through the scheme to the end of March 2025 is £215,467, compared to an average UK house price of £271,000. 

This programme saw the government guarantee lender’s mortgages with less than 10% deposits on new build and existing homes, for FTBs, homemovers and remortgagers. 

However, Labour closed this scheme at the end of June, in favour of its own “permanent” Mortgage Guarantee Scheme, which supports homebuyers with a deposit as small as 5%. 

The scheme, also called Freedom to Buy, was a manifesto pledge Labour made in the run-up to the General Election last July.


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