Mortgage guarantee scheme achieves over 35,000 completions

May 18, 2023 by Brendan O'Neill

Mortgage Advisors

New figures that have been issued by HM Treasury show that more than 35,000 completions have been achieved as a result of the government’s mortgage guarantee scheme since its launch.

This scheme was introduced two years ago and has helped to see a total of 35,503 property purchases to completion during that time. The Treasury figures indicate that this amounts to 1.9% of all completions for residential property sales in the period between the start of April 2021 and the close of December last year, suggesting that the scheme has been reasonably successful.

Outside of residential purchases, there were another 5,110 property sales helped to completion through the scheme in the final three months of last year. The overwhelming majority of the residential purchases completed through the scheme – 86% in total – were by people buying a home for the first time.

The final value of the loans completed under the mortgage guarantee scheme during the chosen period was £6.6 billion, while the guarantee value was £963 million.

When it comes to the average value of a home that was remortgaged or purchased under the scheme, it was £195,838. That is considerably lower than the average price of a property in the UK, which is currently £294,329.

Just 22% of mortgages agreed under the scheme were for homes that had a valuation of £250,000 or higher.

Mortgage advisors with CeMAP training will be pleased to see anything driving completions at a time when there are so many external factors weighing against buyers.