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mortgage guarantee scheme
Mortgage Guarantee Scheme
This government-backed Mortgage Guarantee Scheme allows you to buy a home with just 5% deposit. Whether you're a first time buyer or looking for your next home, you can buy a new or second hand property worth up to £600,000 using the scheme.
This government-backed Mortgage Guarantee Scheme allows you to buy a home with just 5% deposit. Whether you're a first time buyer or looking for your next home, you can buy a new or second hand property worth up to £600,000 using the scheme. 
Discover more about the Mortgage Guarantee Scheme
Mortgage Guarantee Scheme information
What is the Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme is a Government-backed scheme that enables first time buyers or those looking to move to a bigger property, by enabling them to buy with just 5% deposit. The scheme, which is available on new build and second hand homes from 1st April 2021, means you can own your first or next home sooner, with just a 5% cash deposit and a 95% mortgage from a commercial lender.

Key points:
  • The Mortgage Guarantee Scheme allows you to buy with 5% deposit. 
  • The home you purchase must be worth less than £600,000
  • The scheme is eligible for any buyer who meets the criteria
  • First time buyers and those buying their next property can use the scheme
  • The aim is created to help you to get on the property ladder or progress to a larger home sooner with financial support. 
Mortgage Guarantee Scheme information
You are eligible to use the Mortgage Guarantee Scheme if:
  • The home you are purchasing is less than £600,000
  • This will be the only home you own (no second properties or buy to let)
  • The mortgage loan to value is 91% - 95% 
  • You select a repayment mortgage, not interest only
  • You meet the lender's requirements to be accepted for the mortgage
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Mortgage Guarantee Scheme FAQs

What is the Mortgage Guarantee Scheme?
The Mortgage Guarantee Scheme is a goverment-backed scheme that allows buyers to purchase a home in the UK worth up to £600,000, with just 5% cash deposit. Available on purchases from 1st April 2021, the scheme will help both first time buyers and those looking to move on to their next home. 
Am I eligible for the Mortgage Guarantee Scheme?
To be eligibable for the Mortgage Guarantee Scheme, you must:
 
  • Be purchasing a home in the UK worth £600,000 or less
  • Be buying the home to live in yourself
  • Not own another property, either joint or sole ownership
  • Not be planning to rent out the property
  • Take our a mortgage with a loan to value between 91% - 95% 
  • Select a repayment mortgage, not interest only
  • Meet the lender's finanancial requirements to prove you can meet the mortgage payments, based on earnings and credit scoring
Can I use the Mortgage Guarantee Scheme to buy a second property?
No, the Mortgage Guarantee Scheme cannot be used to purchase a second home or buy to let property. The home you buy using the scheme must be the only property in your name, and your place of residence. 

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