The UK government has confirmed the permanent return of its mortgage guarantee scheme – now rebranded as ‘Freedom to Buy’. The initiative aims to help individuals struggling to save for a traditional deposit take their first step onto the property ladder.
What Does the Scheme Offer?
The ‘Freedom to Buy’ scheme provides government-backed guarantees for mortgages with deposits as low as 5%. This reduces the risk for lenders when offering high loan-to-value (LTV) mortgages – specifically those covering 91–95% of a property’s value.
The scheme is available to:
Home movers
Across the entire United Kingdom
Why Is It Important?
Soaring property prices and inflation have made it increasingly difficult for many, especially younger people, to save the 10–15% deposit typically required by lenders. This scheme is designed to make homeownership more accessible by lowering the upfront financial barrier.
Between 2021 and 2024, over 53,000 home purchases were completed under the previous version of the scheme – with 86% of those going to first-time buyers.
What Do Experts Say?
While the scheme has gained political support, the response from mortgage industry experts has been mixed. Many point out that while the guarantee may improve mortgage availability, it does not address other key challenges such as high monthly repayments or a limited supply of affordable homes.
Still, as a supportive tool, ‘Freedom to Buy’ could make a real difference for those trying to get on the housing ladder.
Summary
‘Freedom to Buy’ represents a renewed government effort to improve housing access for younger generations and first-time buyers. If you’re considering purchasing a home with a low deposit, this scheme may be worth exploring – especially as it’s now a permanent fixture of the UK housing landscape.
Further details about the scheme and the list of participating lenders are expected to be released soon.
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🚨 Data accurate as of the date of publication –15.07.2025
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
