Credit, Collections & Insolvency News
The Government has announced that it will extend. the Mortgage Guarantee Scheme by a year to the end of December 2023, helping people with 5% deposits on to the property ladder
The Mortgage Guarantee Scheme has already helped over 24,000 households get onto the property ladder. Launched in April 2021, the scheme supports first-time buyers, who make up 85% of scheme transactions, buy a home with a 5% deposit
Under the scheme the government offers lenders the financial guarantees they need to provide mortgages that cover the other 95%, subject to the usual affordability checks, on a house worth up to £600,000.
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. Since 2010, more than 687,000 households have been helped into home ownership through government schemes. First time buyers often find it hard to save for a large deposit, and the mortgage guarantee has helped over 24,000 households (as of November 2022) overcome this barrier and secure the keys to a new home with a deposit as small as 5%.”
Charles Roe, Director of Mortgages at UK Finance, said “The mortgage guarantee scheme has already helped thousands of first-time buyers, and we support the extension of measures which enable borrowers to realise their dream of home ownership, through lower deposits.”
“We look forward to continuing our work with government and existing lenders on the scheme, which should help many more people get onto the property ladder.”