95% mortgage guarantee scheme made permanent

The 95% mortgage guarantee scheme, introduced by the government after the pandemic to encourage lenders to offer 95% mortgages, was due to run until 30 June 2025 but has been made permanently available¹. The scheme operates UK-wide³.

Under the scheme, the government partially compensates lenders who offer 95% loans if the borrower misses a mortgage payment¹. To qualify, lenders must offer repayment mortgages at between 91% and 95% loan to value, and loans can only be offered on properties priced up to £600,000¹. Borrowers must have a deposit of at least 5% of the price of the property, pass the usual affordability checks, and buy a home costing no more than £600,000³. The scheme is open to first-time buyers as well as people looking to move home³.

Deals available under the scheme are no different to standard mortgages, so borrowers can apply directly with lenders or via a mortgage broker¹.

Experian's guide, published before the change, states that the scheme "will run until 30 June 2025 and is available throughout the UK"³. Which? reports that it has since been made permanent¹.

Why it matters for households

The scheme's permanent status means the option of a 95% loan to value mortgage, backed by a government guarantee to the lender, remains available beyond the original 30 June 2025 end date¹. It applies to buyers across the UK, including first-time buyers and those moving home, on properties priced up to £600,000³. A borrower using the scheme needs a deposit of at least 5% of the purchase price and must pass affordability checks³.

The scheme sits alongside other government-backed routes to buying a home, including shared ownership, where buyers in England purchase a minimum initial stake of 10%, though many schemes require at least 25%, with a deposit of at least 5% of the share and a mortgage covering the remaining 95%¹. Household income limits for shared ownership in England are £80,000 or less, or £90,000 or less in London¹.

Other schemes have different end dates. Help to Buy equity loans remain available only in Wales, where first-time buyers can get a 20% equity loan on a new-build property priced up to £300,000, with loans repaid within 25 years; that scheme runs until September 2026¹. The Help to Buy equity loan scheme is no longer available in England or Scotland².

What happens next

No further end date for the 95% mortgage guarantee scheme has been reported following its move to permanent status¹. The Welsh Help to Buy equity loan scheme continues until September 2026¹.