The government has confirmed that the mortgage guarantee scheme will run for another year to offer more support to first-time buyers.
The scheme was introduced in April 2021 to increase the availability of 95% loan-to-value mortgages after they were withdrawn during the pandemic. The scheme 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.
As of November 2022, the scheme had helped over 24,000 households and the value of mortgage completions was estimated at around £4.4bn. It was originally planned to close at the end of 2022 but will now be extended until the end of 2023.
Your home may be repossessed if you do not keep up repayments on your mortgage.