The scheme was launched on 8th October 2013. Under the scheme, buyers will need to raise only 5% of the property value as a deposit, while the government will then provide a guarantee to the mortgage lender for up to a further 15% up a maximum property value of £600,000. The scheme is available to both new-build and existing properties.
Bank of England Governor Mark Carney sent a letter to Chancellor Philip Hammond in late September 2016 explaining that the current health of the mortgage market meaning borrowers have become less reliant on it and therefore the falling use of the scheme means it should close as planned at the end of the planned three-year term on 31st December 2016 despite the request from some lenders for the scheme to continue beyond that date.
Many lenders offer competitive mortgage products with 5% or 10% deposits independently of the Help to Buy Mortgage Guarantee scheme.
Since the launch of the Help to Buy: mortgage guarantee, 78,749 mortgages have been completed with the support of the scheme. Of these, 79% were purchases by first-time buyers. The total value of mortgages supported by the scheme is £11.6bn to the latest tally in March 2016.
The Help to Buy Mortgage Guarantee scheme is available until 31st December 2016.
The Help to Buy ISA and Help to Buy Equity Loan schemes will remain available to new borrowers.