Mortgage guarantee scheme reassures lenders

12th August 2021

Launched in April 2021, the government guarantee scheme for 95% loan to value (LTV) mortgages has been welcome news for prospective homebuyers with a 5% deposit. The scheme offers a government ‘guarantee’ on 95% LTV mortgages to encourage cautious lenders to bring back these deals. The guarantee applies to the portion of the loan over 80%, with the government compensating the lender for this portion of the net losses suffered in the event of repossession.

First-time buyers and home movers can apply, other eligibility criteria include:

  • You must be buying a property to live in yourself
  • You must pass all normal affordability checks
  • The mortgage must be between 91% and 95% LTV.

Get your journey started

A number of lenders have launched 95% deals, which could bring your property dreams within reach. Whether you’ve had to put your plans on hold or are just beginning your property search, we can help find the most suitable mortgage for your circumstances.

The scheme is due to end on 31 December 2022, subject to review.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.