Buyers looking for assistance in saving for a deposit should take comfort from the launch of the mortgage guarantee scheme, which launched in April.

Lenders involved with the scheme include:

• HSBC

• Barclays

• Santander

• NatWest

• Lloyds

The criteria of the scheme is based on:

• Buyers can purchase property valued up to £600,000 with a 5% deposit

• The scheme is open to first-time buyers, and existing homeowners

• The scheme is not limited to new-build property, it can be used on all manner of property

• The scheme aims to help buyers by incentivising lenders to provide more affordable mortgages to more buyers

Homeowners can benefit from this measure in many ways

This is good news for buyers, but it is also positive news for homeowners looking to sell their home. These homeowners can get help in raising a deposit, but they also benefit from having a greater number of prospective buyers in the market.

Therefore, even if you don’t think this measure directly benefits you, it might boost your chances of making your next move.

Robert Jenrick, Housing Secretary, comments: "For too many people, no matter how hard they work, homeownership can seem out of reach. One of the biggest divides in our country has been between those who can afford their own home and those who cannot. That’s why we are determined to do everything we can to help hard-working families and prospective first-time buyers get their feet on the housing ladder in an easy and affordable way, to level up this country. The new mortgage guarantee scheme which comes into effect today will give providers the confidence to lend and help families and young people get on the property ladder without the prohibitive burden of a large deposit.”

The Housing Secretary concluded by saying; “Despite the challenges faced over the past year, the government has intervened to protect jobs, support builders and buyers to help keep the housing market healthy. Today’s 95% mortgages launch further strengthens our commitment to build back better from the pandemic. In recent years we’ve reversed the trend and seen a positive increase in owner-occupiers. We’re determined to build on this through the range of flexible ownership options which help ensure homeownership is achievable. We want to match the ambitions of aspiring homeowners up and down the country. Together we can turn ‘Generation Rent’ into ‘Generation Buy’.”

Leading property portals have their say

Tim Bannister, Rightmove’s director of property data, says: “The new mortgage scheme could help some first-time buyers bring their plans forward if they have a lower deposit but are still able to pass the affordability checks, and will be welcomed by those who last year we’re struggling to come up with a 15 or 20% deposit. Although the number of new properties coming to the market is improving, it’s still nowhere near enough to satisfy the buyer demand that is already at record levels, and so more people choosing to trade up will be vital to open up more choice at the start of the property ladder.”

We know many people have questions and queries right now, and we are here to help as best we can. Please get in touch with Austin Property Services if there is anything, we can assist you with. You can call us on 01305 858470 or you can email us at This email address is being protected from spambots. You need JavaScript enabled to view it..