Just 17,996 mortgages were completed through the government’s 95% mortgage guarantee scheme between its launch in April 2021 up to the end of March 2022.

New figures published today by the Treasury showed that of these, 85% were purchases made by first-time buyers.

The total of mortgage completions through the scheme represents 6.5% of all residential mortgage completions in the UK from the beginning of April to the end of March 2022.

According to the figures, the total value of these mortgages supported by the government scheme amounts to £3.2bn, while the data also shows that the mean value of a property purchased or remortgaged through the scheme was £190,166. This compares to a national average house price of £278,436.

Compared to total mortgage completions in each region, the treasury’s figures suggested the scheme has supported a higher proportion of mortgages in the South East, North West and Scotland, and a lower proportion in London, the North East, Northern Ireland and Wales.

Commenting on the Treasury’s data, chartered financial planner at Quilter, Rosie Hooper, said: “The scheme, which should be acting as a lifeline for those struggling to get on the housing ladder, saw an uptick in popularity in the second half of its first year with 11,461 deals being completed in the six months of October to March 2022 compared to just 6,535 in the six months of April to September 2021.

“However, while the take up has been modest at best, this is partly as a result of lenders identifying the gap in the market prior to the government’s implementation of the scheme and therefore offering their own 95% mortgage products.

“For example, Nationwide offers a helping hand product, which boosts the borrowing power of first-time buyers and other lenders have similar products aimed at helping those looking to secure a deal in the high loan to value area. Additionally, the low take up may be as a result of the ‘Bank of Mum and Dad’ stepping in to boost first-time buyer deposits to enable them to take out lower LTV deals.”

Senior personal finance analyst at interactive investor, Myron Jobson, added: “The mortgage guarantee scheme is by no means a runaway success, but it would be harsh to label it a flop.

“For all the schemes and initiatives for buyers, the growing mortgage affordability remains problematic.

“The prospect of further interest rate rises to tackle rampant inflation, which would in turn raise mortgage rates, the increase in the energy price cap in autumn along with the escalating broader inflationary pressures from food to car fuel, things are set to get tougher from an affordability perspective.”

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