Policy paper

The mortgage guarantee scheme

Provides background on why the government is introducing a mortgage guarantee scheme, and how it works. The scheme will be open to new 95% mortgages from 19 April 2021, with participating lenders offering 95% mortgages under the government guarantee from this date.


The mortgage guarantee scheme: outline

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The government has announced a new mortgage guarantee scheme to support a new generation in realising the dream of home ownership. This will increase the availability of 95% Loan-to-value mortgage products, enabling more households to access mortgages without the need for prohibitively large deposits. The document’s first section introduces high loan to value mortgage lending and the role of the mortgage guarantee scheme, the second section gives an overview of trends in high loan to value lending and the third section outlines how the new mortgage guarantee scheme will work.

Published 3 March 2021