24 Oct 2023
Chancellor Jeremy Hunt is reportedly considering using the upcoming Autumn Statement on 22 November to extend the mortgage guarantee scheme.
Launched in April 2021 by then-Chancellor Rishi Sunak, the scheme is designed to help first-time buyers get onto the property ladder. It helps to increase the supply of 5% deposit mortgages by supporting lenders in offering such products through a government-backed guarantee on new 95% mortgages.
The scheme is available through participating lenders across the UK on properties with a purchase price of £600,000 or less where the borrower has a deposit of 5%.
It is currently due to end on 31 December 2023, having been extended for 12 months last year. Reports suggest the Treasury is keen on keeping the mortgage guarantee scheme in place for another year.
Additionally, the Chancellor is said to be considering introducing a new ISA to encourage individuals to save for their first home. The Help to Buy ISA, which was introduced in 2015, ended on 31 March.
Mr Hunt may also increase the £450,000 upper limit on home purchases funded by the Lifetime ISA, under which the government provides a 25% bonus on homes worth up to £250,000 in England and £450,000 in London.