The latest figures from the Mortgage Guarantee Scheme show it has helped 56,389 households buy homes with smaller deposits since April 2021.
Most buyers were first-time homeowners, and the scheme supported purchases of affordable terraced and semi-detached properties.
Lower-value homes in Scotland, the North West and the South East of England saw particularly high uptake.
Mortgage Guarantee Scheme driving affordable homeownership
The Mortgage Guarantee Scheme, which ran from April 2021 until June 2025, allowed buyers to secure mortgages with deposits of less than 10%.
By providing a government-backed guarantee to lenders, the scheme reduced the risk of lending and made it easier for households with moderate incomes to access mortgage finance, especially with rising mortgage rates.
Since launch, the scheme has supported £11.5 billion in loans and £12.2 billion in property purchases, with a total guarantee value of £1.7 billion.
Who used the Mortgage Guarantee Scheme the most?
The scheme was overwhelmingly used by first-time buyers, who accounted for 86% of completions, or 48,471 households.
Homes purchased through the scheme tended to be smaller and more affordable, with a median value of £190,000, well below the UK average of £271,000.
Terraced houses made up 35% of completions, semi-detached homes accounted for 30%, and flats or maisonettes made up 22%.
The median household income of buyers was £53,711, with 42% earning less than £50,000, highlighting the scheme’s focus on supporting moderate-income households.
Regional insights: Scotland benefitted the most
Regional trends show where the Mortgage Guarantee Scheme made the biggest impact.
Scotland accounted for 21% of scheme completions, despite only representing 8% of overall UK mortgages.
The North West and South East of England each contributed 12% of completions. These areas represent opportunities for self-builders and renovators, with high demand for affordable terraced and semi-detached homes.
Lower-value properties in these regions are particularly suitable for renovation projects or small-scale self-builds, giving buyers the chance to add value while creating a home that suits their needs.
How can you benefit?
Although the original Mortgage Guarantee Scheme closed to new applications in June 2025, a new, permanent version was launched in July 2025.
This updated scheme allows first-time buyers and home movers to secure mortgages with deposits as low as 5%, backed by a government guarantee. The goal is to ensure the consistent availability of mortgages for buyers with small deposits across the UK.
To apply, buyers must approach participating lenders. Properties must be for owner-occupation and valued at £600,000 or less.
For more information, visit the official HM Treasury release.
