What first-time buyers need to know about the mortgage guarantee scheme

May 29, 2024

mortgage guarantee scheme for first-time buyers

A first-time buyer with a dream to own your home?

Accessing the government’s mortgage guarantee scheme is one way to help you do exactly that.

But how does it work? And do you meet the criteria?

At UKMC, our experienced team of mortgage advisors understands that buying your first home can feel overwhelming, which is why we’re here to help.

What is the mortgage guarantee scheme for first-time buyers?

The mortgage guarantee scheme for first-time buyers is a government initiative to help those who’ve never owned a house to secure a mortgage without the need for a large deposit.

The objective is to increase the availability of 95% loan-to-value mortgage products, enabling more households to access mortgages.

It’s currently due to run until June 2025.

Prospective homeowners can apply if they intend on buying a property that will be their only place of residence, permitting them to buy a property worth up to £600,000.

Of course, applicants must pass the relevant affordability checks to confirm their eligibility for the scheme, with a wide array of lenders to choose from.

In cases where a buyer fails to make the payments and their house is taken from them, the scheme will compensate the relevant mortgage lender.

Is the mortgage guarantee scheme only for first-time buyers?

In short, no, it’s not.

Any buyer with a small deposit can apply for one of these government-backed mortgages to climb the property ladder, including previous homeowners and movers who want to remortgage.

Of course, they must still meet the relevant criteria, including lenders’ normal mortgage affordability tests.

Is the mortgage guarantee scheme still available?

Yes! First launched in April 2021, the scheme was initially slated to close at the end of the following year.

It was then extended until December 2023, and has since been again to June 2025.

How UKMC can help

No matter whether you want to learn more about the mortgage guarantee scheme for first-time buyers, or the benefits of choosing this type of arrangement, our expert team is here to explain clearly your options.

At UKMC, we’ve accumulated valuable experience assisting first-time buyers, from identifying the benefits of being a first-time buyer to helping them find the best deal for their circumstances.

Our know-how when it comes to different types of lenders, their products, and exploring carefully the options available to every prospective homeowner, is unrivalled.

Don’t want to take our word for it? Then why not browse more than 400 positive reviews on Trustindex.

If you want to secure the best mortgage deal as a first-time buyer, why not book your consultation today?

You also have the option of requesting a callback at a more convenient date and time. To get started with UKMC, you can also fill out our online contact form or book your own appointment.


UK Mortgage Centre is a trading style of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. The Financial Conduct Authority does not regulate will writing and taxation and trust advice.