Mortgage Guarantee Scheme

Applying for the Mortgage Guarantee Scheme is a straightforward process. Here’s a step-by-step guide to how you can start your application process:

1. Check Eligibility – Make sure that you match the scheme’s criteria. The property must be valued less than £600,000 or less, you need at least a 5% deposit, the property must be a residential home in the UK, you must be taking out a repayment mortgage, the property must be your main home of residence and you need to pass lender credit checks and affordability assessments.
2. Finding the Right Lender – Not every lender will be able to help you with the Mortgage Guarantee Scheme. Using a mortgage broker allows you to sit back and relax whilst they find a product that is tailored to your personal and financial situation.
3. Prepare Your Application – Once your mortgage broker picks out the perfect deal for you, it is time to move on to preparing your Mortgage Guarantee Scheme application. Here we will need proof of identity, proof of address, proof of income, and a copy of your credit report.
4. Submit Your Application – Once everything is ready to send off, we can submit your Mortgage Guarantee Scheme application off to the mortgage lender. Whilst they carry out all of their checks, all that you need to do is wait for any updates!

Just like a traditional mortgage, the Mortgage Guarantee Scheme process can take anywhere from 3-9 months to complete. Using a mortgage broker may significantly speed up your process as we handle all of the paperwork for you, allowing you to have a stress-free process.

The Mortgage Guarantee Scheme allows you to borrow 95% of the value of the property.

The way that this works is that you will take out a 95% LTV mortgage, after providing your 5% deposit.

You still need to find a mortgage product that matches the property you’re looking to buy. Using a mortgage broker could potentially help you save money on your mortgage repayments.

The Mortgage Guarantee Scheme help you achieve homeownership much quicker.

Sometimes, saving for that 10% deposit mark can be very difficult. With the Mortgage Guarantee Scheme now on offer, achieving your dreams of buying a new property becomes a lot more realistic.

With the Mortgage Guarantee Scheme, you may be eligible for a mortgage with a 5% deposit via a 95% LTV mortgage.

You must first qualify for the Mortgage Guarantee Scheme before you can get a mortgage with a 5% deposit. Therefore, it is important to look at the scheme’s criteria before applying.

If you’re looking for Mortgage Guarantee Scheme mortgage advice, speak with one of our mortgage advisors and book your free appointment today.

Yes, the government offer a variety of schemes for both first time buyers and existing homeowners to help them buy a new property.

Other government schemes include Shared Ownership, Forces Help to Buy, Lifetime ISA and Right to Buy.

• Shared Ownership – The Shared Ownership scheme allows borrowers to buy a share of a property and pay rent on the remaining share. Usually, borrowers take an initial share of 10%-50% out in the property. When it becomes more affordable, some homeowners up their share in the property and sometimes get the chance to have 100% ownership.
• Forces Help to Buy – The Forces Help to Buy scheme is a government initiative designed to assist current and former members of the armed forces in purchasing a property. The scheme allows servicemen and servicewomen to borrow up to 50% of their salary, interest-free, to use as their deposit.
• Lifetime ISA – The Lifetime ISA is a savings account that helps you save for your mortgage. The way this initiative works is that you add savings to your account and the government top up your savings by 25%. With savings capped at £4,000 per year, the maximum you can earn is £1,000 (25%) towards your deposit. This still leaves you with £5,000 in your Lifetime ISA, which can be used towards your mortgage deposit.
• Right to Buy – Right to Buy can enable you to purchase your council house, possibly without a deposit. This scheme comes with strict lending criteria, so speaking with a mortgage advisor is highly recommended.

If you want to learn more about these government-backed schemes and the Mortgage Guarantee Scheme, feel free to get in touch with our mortgage advisors.

Getting mortgage advice has never been easier, simply boo your free mortgage appointment online today.

The scheme gives lenders the opportunity to purchase a guarantee on the mortgage, meaning that they are able to make their money back in the event of repossession.

The guarantee covers up to 80% of the purchase value of the guaranteed property, addressing 95% of the net losses within this portion. Consequently, the lender remains responsible for 5% of the losses covered by the guarantee.

This arrangement ensures that the lender retains a stake in every loan, maintaining a degree of risk and encouraging prudent lending practices.