UK Government scheme to help first-time buyers get onto property ladder extended for a year

A UK-wide scheme to help homebuyers with small deposits has been extended for another year.

The mortgage guarantee scheme helps first-time buyers to purchase a home with a 5% deposit.

Under the scheme, the UK Government offers lenders the financial guarantees they need to provide mortgages that cover the other 95%.

It is subject to all the usual affordability checks on homes worth up to £600,000.

The scheme was launched in April 2021 and will now be extended until December 2023.

It had been due to be closed at the end of this year.

Chief secretary to the Treasury John Glen explained the scheme will allow thousands of people to benefit.

“For hard-working families facing today’s challenging economic conditions, it’s right that we continue to help them secure their first home or move into their dream house,” he said.

“Extending this scheme means thousands more have the chance to benefit and supports the market as we navigate through these difficult times.”

Scotland Office minister Malcolm Offord added: “The extension of this scheme is welcome news, particularly for first-time buyers.

“It will enable thousands of people to be able to get a mortgage they can afford and get on the housing ladder.

“This is just one of the ways the UK Government is helping people with the rising cost of living, ensuring there’s assistance for those who need it most and supporting the housing market through these challenging times.”