Government scheme creates nearly 40,000 new loans

December 4, 2023 by Brendan O'Neill

Lenders

New figures issued by HM Treasury show that the Mortgage Guarantee Scheme created by the Government has enabled the completion of close to 40,000 mortgages in the two years since launch.

Approximately 39,253 mortgages have been completed through the scheme since 2021. That amounts to roughly 1.6% of the total number of residential loans that were completed over that time period. The total value of all loans completed through the scheme is £7.4 billion, while that of the guarantee provided by the Government is £1.1 billion. The total value of the homes sold using it was £7.8 billion.

When the number of Mortgage Guarantee Scheme completions is looked at on a yearly basis, the total for 2021 was 12,230. For the following year, the figure rose to 23,119, while for 2023 so far it stands at 3,824. This indicates that 2022 was the period when the scheme was having the most impact.

In terms of the demographics that have benefitted from the scheme, those buying for the first time have dominated. 86% of all the mortgages completed using it were for first-time homebuyers, the Treasury has stated. That amounts to a total of 33,766.

England was the part of the UK with the highest percentage of Mortgage Guarantee Scheme completions, at 69%. In regional terms, the North West had the highest percentage, with 12%.

That last figure is likely to be encouraging to anyone who is thinking of taking CeMAP classes in the North West to become mortgage advisors.