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"First-time buyers will suffer the most" as mortgage guarantee scheme ends on 30 June

Journalist: Emily Mee, The Sun

ended 10. June 2025

With the Mortgage Guarantee Scheme set to come to an end at the end of this month, Newspage asked brokers if it will have an impact on first-time buyers. One said it categorically would: “First-time buyers will suffer the most, as the scheme helped over 53,000 people onto the ladder. Let's hope they wake-up and announce something useful soon rather than leaving everyone in limbo.” But another added: “Many lenders have been offering 95% and above mortgages without the scheme backing for a while so I don't believe this will have a major impact. With some lenders bringing in 100% LTV mortgages and 1% deposit mortgages, I do not think the end of this scheme will be an issue. Lenders today are standing on their own two feet and providing first-time buyers with lots of choice and opportunities to get onto the ladder.” Views from verified brokers below.

9 responses from the Newspage community

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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
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Sean Horton0
Managing Director at Respect Mortgages
The government's timing here is appalling. Promising a "permanent, comprehensive" replacement in February but staying silent as the deadline approaches is classic Westminster incompetence. Lenders need certainty to plan their mortgage ranges. Without clarity on what's coming next, expect some to quietly withdraw their 95% products. First-time buyers will suffer the most, as the scheme helped over 53,000 people onto the ladder. Let's hope they wake-up and announce something useful soon rather than leaving everyone in limbo.
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Emily Franks0
Director at Emily’s Mortgage Services
Many lenders have been offering 95% and above mortgages without the scheme backing for a while so I don't believe this will have a major impact. With some lenders bringing in 100% LTV mortgages and 1% deposit mortgages, I do not think the end of this scheme will be an issue. Lenders today are standing on their own two feet and providing first-time buyers with lots of choice and opportunities to get onto the ladder.
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Justin MoyVerified
Managing Director at EHF Mortgages
It's very possible that the scheme will not replaced, given the relative confidence within the property and mortgage market, with many lenders offering small or no deposit schemes that don't use the Scheme. This was originally designed to help lenders stretch to 90-95% Loan to Value at a time when confidence within the market was low, so this looks to be a positive step without causing too many ripples with lenders.
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Mike StatonVerified
Director at Staton Mortgages
The mortgage industry is a very robust industry as evidenced over the past five chaotic years it has fought through. The Mortgage Guarantee Scheme is not a needed scheme, it is a half-hearted attempt of a failing government to try and win the public vote. Lenders are more than capable of offering 5% deposit mortgages without the backing of the government, in fact, a lot of lenders already do so without using the mortgage guarantee scheme. In my experience in this industry, the government are best to stay clear of anything mortgage related, as whenever they decide to intervene, it always ends up in disaster. The mortgage industry is on the rise, rates are dropping and the housing market is moving. This has very little to do with the last two incompetent governments we have been unlucky enough to have in place.
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Ken JamesVerified
Director at Contractor Mortgage Services
The scheme was introduced in April 2021 to help people, especially first-time buyers, access 95% loan-to-value mortgages with just a 5% deposit with the government providing lenders with the all-important guarantee to the portion of the mortgage between 80% and 95% of the property’s value. This reduces the risk for lenders and encourages them to offer high-LTV mortgages. This came at a time where lenders needed a little push to lend at this higher loan to value limits. Since then we have seen lenders offering 95% lending without the safety net of the guarantee scheme, and the scheme has become redundant. I personally do not think anyone in the industry will lose any sleep over the fact that no replacement looks likely.
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Pete MuglestonVerified
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This is mixed news for first-time buyers. On the one hand, the mortgage guarantee scheme was a useful way of helping first-time buyers get on the property ladder if they didn't have a large deposit. But, given that a lot of lenders are now offering mortgages with a 5% deposit and lower, losing it isn't as big an issue as it could have been. As the government has not given any further details about the scheme it promised in February, we could be waiting a while before we hear anything. Still, a new scheme to help first-time buyers would be welcomed by most and help give the industry a shot in the arm.
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Ben PerksVerified
Managing Director at Orchard Financial Advisers
The scheme has done its job. In other words, it got lenders back up into the higher loan to values. Lenders have warmed to this area of the market now and I don’t think they’ll pull out when the scheme fades away. If anything, lenders are doubling down and looking at more ways to help borrowers with low deposits.
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Rob PetersVerified
Principal at Simple Fast Mortgage
Losing the current guarantee scheme will bump up deposit requirements for some buyers but it’s unlikely to stop 95% LTV lending altogether. Many lenders already offer low-deposit options without a guarantee, and industry momentum behind 100% mortgages suggests the market is fairly robust.

Plus, the government’s stated intention to launch a permanent scheme is encouraging. If that comes online quickly, this could merely be a brief hiatus rather than a structural setback for first-time buyers.