Help to Buy: Mortgage Guarantee scheme
Announced in the March 2021 budget, the Mortgage Guarantee Scheme offers the chance for first time buyers, as well as existing homeowners, to obtain a mortgage loan of 95% of the value of a property, provided they can raise a deposit for the remaining 5%.
As it’s a high amount, lenders are being incentivised by the government (through a guarantee system that compensates them for a portion of their losses in the event of foreclosure) to encourage them to make the funds available to borrow.
It applies to any property under the value of £600,000, a new build or an older property, and is not restricted to first time buyers as some schemes are.