A total 56,389 mortgages have now been completed under the Government’s mortgage guarantee scheme since it was introduced in in April 2021.

New figures published by the Treasury, covering the period between the scheme’s launch to the 31 March this year, revealed that 86% of the purchases through the scheme have been by first-time buyers.

The mortgage guarantee scheme closed to new accounts across the UK on 30 June this year. Under the scheme, the Government offered lenders the option to purchase a guarantee on mortgage loans where the borrower had a deposit of less than 10%.

According to the Treasury’s latest figures, the total value of mortgages supported by the scheme has now reached £11.5bn. This means the mean value of a property purchased or remortgaged through the scheme is £215,467, which compares with a national average house price of £271,000.

Compared to total mortgage completions in each region, the scheme has supported a higher proportion of mortgages in the North West, South East and Scotland, and a lower proportion in the North East, London, Wales and Northern Ireland.

Financial planner at Quilter, Holy Tomlinson, commented that the latest statistics show the “lacklustre impact” the scheme has had so far.

“Mortgage completions supported by the scheme have been tailing off since it first launched, and while there seemed to have been a slight uptick in previous quarters which may have been driven by more people trying to push through completions ahead of the changes to stamp duty, the take up has still been relatively low,” Tomlinson said.

“What’s more, the average property value under the scheme was £215,467, significantly below the national average house price of £271,000, which raises questions about the scheme’s ability to cater to those in more expensive parts of the country.

“While the Government’s decision to make the Mortgage Guarantee Scheme permanent may help at the margin, it does not create homes or meaningfully lower borrowing costs. Without more supply and a clearer path on rates and taxation, the housing market could face a winter of discontent that drags into next year with even more people shut out.”

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