The UK government has confirmed that the Mortgage Guarantee Scheme is now a permanent measure, following its inclusion in Labour’s election manifesto.
The scheme is designed to support access to 91–95% loan-to-value (LTV) mortgages by providing lenders with a government-backed guarantee that covers part of any potential losses. It’s available to both first-time buyers and home movers across the UK.
Helping Buyers Overcome Deposit Barriers
The Treasury recognised that many aspiring homeowners struggle to save for a large enough deposit, which remains one of the biggest hurdles to getting on the property ladder.
The original version of the scheme, launched in 2021, helped to complete around 53,250 mortgages before its expiry in 2024 — with a striking 86% of those going to first-time buyers.
Balancing Opportunity and Risk
The Mortgage Guarantee Scheme applies across England, Wales, Scotland, and Northern Ireland, with only small variations in wording.
While higher LTV mortgages can be a vital opportunity for those with smaller deposits, they also come with greater risk — especially if property prices fall.
That’s why it’s essential to seek professional mortgage advice before committing, ensuring you find a deal that balances rate, fees, and suitability for your personal circumstances.
The permanence of the scheme is a positive step for accessibility — but as always, careful planning remains key to long-term financial security.
🚨 Data accurate as of the date of publication
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, mortgage, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Services – Essentially Mortgages Q4 2025
