The Treasury has released the latest statistics for the Mortgage Guarantee Scheme, showing that from 19 April 2021 to the end of December 2024, it helped to complete 53,261 mortgages.
Among that number, 86% were purchases by first-time buyers. The total value of mortgages supported by the scheme stands at £10.7bn.
Compared to total mortgage completions in each region, the scheme has supported a higher proportion of mortgages in the North West, South East and Scotland, and a lower proportion in the North East, London, Wales and Northern Ireland.
The mean value of a property purchased or remortgaged through the scheme was £211,616, compared to a national average house price of £268,000.
The Mortgage Guarantee Scheme launched on 19 April 2021 and is only open to new accounts across the UK until 30 June 2025.
Under the scheme, the government offers lenders the option to purchase a guarantee on mortgage loans where the borrower has a deposit of less than 10%. The scheme can be used for mortgages on both new build and existing homes, and by first-time buyers, home movers and those remortgaging.
In February this year, the government announced that it was committed to launching a “new, permanent, comprehensive mortgage guarantee scheme that will open the door to homeownership for more young families and hardworking renters”.
Details of the new scheme will be announced “in due course”, the statement said.
Matthew Pennycook, housing minister, commented: “The affordability challenges facing first-time buyers mean that we now have a generation locked out of homeownership. This government is determined to change that, ensuring that young families and hardworking renters can buy a home of their own.”
Read the orginal article: https://propertyindustryeye.com/mortgage-guarantee-scheme-figures-released-as-cut-off-point-looms/
