A programme designed to help first-time buyers get a foot in the housing market has been extended for 12 months, the Government has announced.
The mortgage guarantee scheme, which was launched in April 2021, protects lenders against losses when lending to first-time buyers.
It enables them to purchase a property worth up to £600,000 with just a 5% deposit.
Extending this scheme means thousands more have the chance to benefit, and supports the market as we navigate through these difficult times— Chief Secretary to the Treasury, John Glen
The programme is designed to help creditworthy households who are struggling to save for higher mortgage deposits get on the housing ladder, by compensating lenders for a portion of any losses on defaults.
It was originally scheduled to close at the end of December but the Government said it has officially been extended until the end of 2023.
Chief Secretary to the Treasury John Glen said: “For hard-working families facing today’s challenging economic conditions, it is right that we continue to help them secure their first home or move into their dream house.
“Extending this scheme means thousands more have the chance to benefit, and supports the market as we navigate through these difficult times.”
The Government added the scheme has already helped over 24,000 households get on the property ladder.
