Apr 19, 2021

Mortgage Guarantee Scheme


On 19 April 2021 the new government backed mortgage scheme was launched.

What is the Mortgage Guarantee Scheme?

The scheme is designed to help buyers with a 5% deposit buy a home and is open to all home buyers, not just first time buyers.  The scheme will help provide an affordable route to home ownership for aspiring home-owners.

According to Moneyfacts.co.uk the launch of the scheme has already seen a significant rise in mortgage deals available for those with a 5% deposit.

What are the criteria for the Mortgage Guarantee Scheme?

We understand that the criteria for the Mortgage Guarantee Scheme are as follows:

  • The scheme runs from 19th April 2021 until December 2022 (18 months)
  • The scheme allows you to get a mortgage with a 5% deposit.
  • Open to first time buyers and existing homeowners.
  • Available for property in the UK with a value of no more than £600,000.
  • Available for residential mortgages i.e. not a second home orf buy-to-let property.
  • The mortgage is to be taken out by an individual(s), not a business
  • Repayment mortgage only using the scheme, no interest only options.
  • You will require a regular income, good credit rating and show you can afford the monthly mortgage repayments.

Which lenders offer the Mortgage Guarantee Scheme

According to the Government press release on the 19th April 2021 the scheme is already available across the country, with Lloyds, Santander, Barclays, HSBC and Natwest with Virgin Money following soon.

However, we would always recommend that you speak to an independent mortgage advisor that will be able to compare the best mortgage rates on your behalf.

What other home ownership options are available?

The Mortgage Guarantee Scheme is one of a range of flexible home ownership options available.  These include Help to Buy, Shared Ownership and the First Homes Scheme.

How is the mortgage guarantee scheme different from the Help to Buy:  Loan Equity Scheme?

The mortgage guarantee scheme was set up to support households who cannot get a mortgage because of the reduced 95% Loan-To-Value products as a result of the COVID-19 pandemic.  It also helps existing homeowners who are looking to move and require a 95% Loan-To-Value mortgage and is available across the UK on properties with a purchase price of £600,000 or less.

The Help to Buy:  Equity Loan scheme is available to those who aspire to own a new build home, but struggle to afford the repayments on a low deposit mortgage.  Under this scheme the government provides an equity loan for up to 20 per cent of the value of a new build home, interest free for the first 5 years.  The equity loan must be paid back to the government on sale, or when the mortgage is repaid.

How do I find out more

If you wish to find out whether you can benefit from the Mortgage Guarantee Scheme then please contact your LOCAL Michael Tuck Estate Agents branch and we will put you in touch with an independent mortgage advisor.

Correct at date of publication.


Hear what our clients have to say...

Michael Tuck Lettings in Quedgeley have managed our rental property for the past 11+ years.

During this time their professionalism has never dropped. In the early days, Ian, Graham and Vikki-Lee were a huge help to a novice landlord. I’m pleased to say they are still there with a helping hand. Claire has always been the nudge I needed for the necessary insurance and safety checks. Having had some difficult times over the past couple of years I would like to say a special thank you to Lianne who has been there to help wherever she could.

We are in the process of selling the property and as expected Miles and Otis are dealing with everything with Tucks usual professionalism.

I have no hesitation in recommending this lovely, friendly office.

Linda Parker

I cannot recommend Michael Tuck Estate Agents enough.

They were so professional and so prompt with their communication. In particular we would like to mention Charlie for his regular updates and extremely helpful service in the sale of my mothers house. We were in a particularly long chain, and he went over and above to assist us in the communications between the buyers and sellers in order for our chain to proceed. He even contacted Solicitors and helped progress the exchange.

“We are certain if it wasn’t for him we wouldn’t have sold our house! We cannot thank him and his team enough.”

Kelly Durkin

Miles has gone above and beyond to ensure buying our first house has been a smooth process. He has offered clarification and reassurance at all steps of the journey, making us feel like valued clients.

“We would recommend Michael Tuck Estate Agents.”

Hollie Blunt

Michael Tuck New Homes in Gloucester assisted us selling three phases of our development in Kingsway, Gloucester.

“All of the staff were very professional and knowledgeable sales people who represented our company as if it were their own.”

If we were to need help selling our homes in the Gloucester ara again they would be the first phone call i’d make.

Stephen Holbrook. Abbey Homes

Tony and John, Abbeymead branch, supported us during very difficult circumstances (and we don’t just mean Covid!)

The same applies to other staff when answering queries etc.

“They were unfailingly courteous and returned phone calls and emails promptly.”

David Duncan

I have been a customer of Michael Tuck Lettings in Abbeymead for coming up to 2 years now.

I would like to highlight Kurt and James for there forever ending support and excellent communication. Their joint efforts have filled me with confidence in the ability to keep my family safe in a home we love.

No matter the complexity or need they are always on hand to support and come to some form of reasonable resolution.

For this reason I would recommend Michael Tuck to all my family and friends and will hopefully continue to stay a customer of Michaels Tucks until I purchase my own home. Thank you

“Being a contact centre manager I know how important customer service is and I must say that Michael Tuck has not disappointed.”

Jay Preece

Miles and the team have been brilliant from start to finish during the sale of our house.

Miles especially went above and beyond with sales chasing when I think most other people would have probably given up! Really happy with the service.

“Such a friendly and professional team and nothing was too much trouble.”

Anna England

I was recommended Michael Tuck Estate Agents in Abbeymead by a friend, thank you friend!

I would like to say a big thank you and well done to the team who are very friendly, helpful and have taken the strain out of what was a fairly long house sale.

Special thanks go to Chloe and Tony for their positivity and Chloe thank you for your good humour which lifted me during the long process!

“I would highly recommend them for a first class service”

Jane West

Michael Tuck Lettings in Abbeymead have been a fantastic letting agents looking after our house for the past 17 years.

We have recently sold the house with the sales department.  Kurt has looked after us incredibly well during the 17 years of lettings and Tony, Andy and Chloe have made the selling very easy. Thank you

“The staff are professional, approachable and easy to contact.”

Claire Rawlinson

I have recently bought and sold through the Gloucester branches and cannot praise Miles and the team highly enough.

In what has been a very testing time for the industry, Miles and all the staff have worked tirelessly in my purchase and even more so my sale.

Thoroughly recommend Tucks every time. Special thanks to Otis. Thank you guys it’s been an absolute pleasure.

“Their drive and communication skills have been amazing.”

David Lichtenstein