Content Writer
Mortgage Advisor & Director
If you’re struggling to save for a house deposit, the mortgage guarantee scheme could make things easier for you. Here, we explain how the scheme works, which lenders support it, and how to qualify. We’ll also cover how much you could borrow and alternative low-deposit mortgage approaches to explore.
What is the mortgage guarantee scheme?
The mortgage guarantee scheme is a government-backed initiative designed to help more people buy a home with just a 5% deposit. Under the scheme, lenders are encouraged to offer 95% loan-to-value (LTV) mortgages. The government provides a guarantee to cover some of the lender’s losses if the property is repossessed.
The scheme was initially introduced in April 2021 to boost the housing market and increase access to mortgages for buyers. It has since been extended multiple times, but from July 2025, the UK Labour Government made the mortgage guarantee scheme permanent throughout England, Wales, Scotland and Northern Ireland.
Mortgage guarantee scheme eligibility
To qualify for the mortgage guarantee scheme, there are a few key pieces of eligibility criteria to be aware of, including the following:
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The property must be a residential home (not a buy-to-let or second home).
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You must be buying as an individual or jointly, not through a company.
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The house purchase must cost £600,000 or less.
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You must have a deposit of at least 5%.
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You must take out a repayment mortgage (interest-only isn’t allowed).
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The LTV must be between 91% and 95%.
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You must pass standard affordability and credit checks with the lender.
The scheme is open to both first-time buyers and existing homeowners who meet the additional criteria for each lender.
Begin your mortgage journey
Which mortgage lenders support the scheme?
Several mainstream mortgage lenders in the UK have signed up to support the mortgage guarantee scheme. While availability may vary, here are some of the key lenders currently offering 95% mortgages under the scheme:
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Barclays: Supports the mortgage guarantee scheme for residential purchases up to £570,000 for a house or £275,000 for a flat. Barclays only offers repayment mortgages and doesn’t allow the purchase of new builds under the scheme.
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NatWest: Offers 95% mortgages through the scheme for first-time buyers and home movers. The property can’t be valued higher than £600,000, and you can’t purchase a new build with NatWest under the mortgage guarantee scheme.
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Lloyds Bank: Supports the scheme across a range of fixed-rate products, although interest rates can be higher if you use a 5% deposit. With Lloyds, new build houses and bungalows are permitted under the scheme, but new build flats are excluded.
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Halifax: Offers 95% LTV mortgages under the mortgage guarantee scheme for first-time buyers and home movers, as long as it’s your only residence. The scheme can’t be used for new build flats with Halifax, and the loans aren’t compatible with other government schemes.
How to apply for the mortgage guarantee scheme
You don’t need to apply to the scheme directly; it’s all handled behind the scenes by the lender when you take out your mortgage. If your application meets the criteria and your chosen lender is part of the scheme, you should be able to get a mortgage with a smaller deposit. Here’s what the typical process looks like:
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Work out your budget and deposit size (minimum 5%).
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Check your credit reports and gather key documents (ID, payslips, bank statements).
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Speak with a mortgage broker who can find a suitable lender.
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Compare mortgage rates and choose a deal with terms that suit your needs.
You can compare rates online with us for free below if you’re comfortable doing so, but using a broker is the best way to ensure you're matched with a lender who supports the scheme and offers the most competitive deal.
We have set our rates tool below to return results for 95% LTV mortgages but this can be manually changed by adjusting the property value and mortgage amount to match your personal circumstances.
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How much can you borrow?
How much you can borrow through the mortgage guarantee scheme will depend on how each lender calculates affordability, which can be assessed using a range of measures involving:
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Your income, type of employment, and the type of property you’re looking to buy.
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Your deposit size (minimum 5% of the purchase price).
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The resulting LTV ratio after your deposit is taken into account.
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The income multiple used (usually 4 to 4.5 times your salary).
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Your credit history and any existing financial commitments, debts, or dependents.
Every lender is different, so getting tailored advice from a mortgage broker can help you figure things out based on your exact circumstances.
However, if you want to get a rough idea about how much you can borrow with the mortgage guarantee scheme, you can use our calculator:
Alternative ways to get a low deposit mortgage
If you only have a small amount of savings, it is still possible to get a loan without relying on the mortgage guarantee scheme. Here are some alternatives to consider:
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Family-assisted mortgages, such as guarantor mortgages, family boost mortgages, or family springboard mortgages.
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Gifted deposits from family, friends or anyone else can provide your savings with an immediate uplift.
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Shared ownership schemes where you buy a portion of the property and pay rent on the rest.
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Schemes designed for specific professions, such as the First Homes scheme or Forces Help to Buy (FHTB), offer discounted homes for key workers.
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Professional mortgages are available for certain careers, such as doctors or nurses, who may qualify for specialist deals.
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New-build developer incentives with some offering 5% deposit matches or tailored mortgage deals.
Our experienced mortgage brokers can help you explore all your available options and determine whether the mortgage guarantee scheme or an alternative route offers the best solution.
Why choose Teito for your low deposit mortgage?
With our free comparison tool, you can view the latest mortgage rates from lenders across the UK, including those participating in the mortgage guarantee scheme. We also offer expert support through specialist brokers who understand the unique criteria and requirements of 95% LTV mortgages.
Whether you’re a first-time buyer or moving home with a small deposit, our experienced advisers will help you find the most suitable lender and secure the best rates available. Here’s why people across the UK trust us to help them get a mortgage with a 5% deposit:
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Easily compare current mortgage rates online for free
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Our brokers are 5-star rated on leading review sites
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Free initial chat with no obligation to proceed further
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Access to the full choice of mortgage guarantee scheme lenders
If you’d like to get a bespoke rates comparison or have a free, no-obligation chat with a broker who specialises in low-deposit mortgages, you can get started here.
FAQs
The mortgage guarantee scheme is available across the UK, including Scotland and Wales. However, both countries also have their own homeownership support schemes, which may be worth considering.
For example, Wales offers a Shared Ownership Wales scheme, and Scotland has various affordable housing initiatives. A knowledgeable mortgage broker can help you understand all your options.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.