The mortgage guarantee scheme for products with loan-to-value (LTV) of 95% has helped support just under 25,000 mortgage applications to completion since it was launched, according to HM Treasury figures.
These figures show that a total of 24,153 applications were completed using the mortgage guarantee scheme in the period from its April 2021 introduction through to the end of June this year. The Treasury figures also reveal that the vast majority of applications completed using the scheme were from first-time homebuyers – 85% of them to be exact – and that the overall value of the completions under it was £4.4 billion.
When looked at on a monthly basis, May was the month for 2022 that had the most mortgage guarantee scheme completions, with a total of 2,205. There has been a slow but consistent increase in the numbers making use of it since 2022 began, as January saw 1,692, while by June, the number was 2,127.
Speaking to Mortgage Solutions, Karen Noye from Quilter stated that the volume of completions under it was surprisingly low given how many obstacles there currently are for first-time homebuyers, but that it was growing. She then added:
“In its first full year – April 2021 to March 2022 – a total of 17,996 mortgages were completed with the support of the scheme. In comparison, in just the first three months of its second year – April to June 2022 – a total of 6,157 were completed.”
It is possible that advisors with CeMAP can make borrowers more aware of this scheme.
