A total £8.9bn worth of mortgages have been supported by the Government’s Mortgage Guarantee Scheme, new figures published by the Treasury have shown.

New data, covering the period from the scheme’s launch in April 2021 up to the end of June this year, revealed that 45,775 mortgages have been completed with the support of the scheme, and that around 87% of these were for purchases by first-time buyers.

The UK’s Mortgage Guarantee Scheme launched on 19 April 2021 and remains open to new accounts 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, and the guarantee compensates participating lenders for a portion of net losses suffered in the event of repossession.

According to the Treasury’s figures, the mean value of a property purchased or remortgaged using the scheme has been £204,716, which compares to a national average house price of £288,000.

Mortgage expert at Quilter, Karen Noye, said that the Labour Government’s pledge to make this scheme permanent, under a rebranded “Freedom to Buy” initiative, risks doubling down on policies that fail to meaningfully address affordability issues or the structural flaws in the housing market.

“While well-meaning, Labour's plans do little to tackle the core problem of high house prices relative to wages, which continue to put homeownership out of reach for many,” Noye added. “The reliance on 95% loan-to-value mortgages leaves buyers with minimal equity, increasing the risk of negative equity should house prices fall—a real concern in a volatile market.

“Schemes like these are more of a sticking plaster than a solution, helping only a fraction of buyers while doing nothing to address the broader affordability crisis.”

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