Before we get into what the Mortgage Guarantee Scheme is, let’s start by saying that following the Autumn Statement, which was delivered by Jeremy Hunt on the 22 November, the Mortgage Guarantee Scheme will now be available to help first time buyers get on the property ladder until June 2025.
Up for the chop?
The reason why this is positive – apart from the fact that it helps first time buyers buy a home (which we’ll come onto shortly) – is that the scheme was due to come to an end on 31 December 2023.
The decision will no doubt be well received by hopeful first-time buyers who had just about saved enough of a deposit. And, for those who were still a way off, then they now have just over a year-and-a-half to grow their savings pot.
Now, let’s get into what the Mortgage Guarantee Scheme is.
Mortgage Guarantee Scheme explained
As a Maidenhead mortgage broker that’s helped countless first-time buyers get their feet on the property ladder for almost 20 years, we’ve seen a number of government initiatives designed to help make buying a property that little bit more accessible for those who’ve never done it before.
Some have been successful. Others less so. However, this one is particularly good.
With the Mortgage Guarantee Scheme, first-time buyers are able to purchase a property up to the value of £600,000 with only a 5 per cent deposit. In other words, the scheme allows prospective buyers to purchase a property with a 95 per cent loan to value mortgage.
It’s not just available for first-time buyers, either. Existing homeowners can benefit from the scheme, too.
Getting things moving
There wasn’t much that was left untouched by COVID, and 95 per cent loan to value mortgages were no exception.
In December 2019, property hunters had around 400 95 per cent loan to value mortgages to choose from. Fast forward to January 2021, two months before the scheme was originally launched, and it dropped to a mere eight*.
To go some way to counter that, this scheme is designed to get the property market moving for those who don’t have a large deposit, or who haven’t accrued equity in their property over many years.
Do I qualify for the Mortgage Guarantee Scheme?
If you’re looking to purchase a property with a market price no higher than £600,000 and you have a 5 – 9 per cent deposit, then the answer’s ‘yes’.
Of course, there are more points to consider. However, your mortgage broker will be able to walk you through these and help you unlock the benefits of the Mortgage Guarantee Scheme.
So, why not get in touch with our highly skilled team of mortgage brokers in Maidenhead to find out more.
*Source: https://www.ownyourhome.gov.uk/scheme/mortgage-guarantee-scheme/
Benefit from the Mortgage Guarantee Scheme before it disappears in 2025. To find out how, contact our team of Berkshire mortgage brokers on 01628 560820 or by emailing enquiries@altonmortgages.co.uk.