The number of mortgage completions under the mortgage guarantee scheme has reached 50,038 since its launch, figures show.
Based on the latest government figures, mortgage completions under the mortgage guarantee scheme made up around 1.2% of all residential mortgage completions in the UK from April 2021 to September 2024.
The report added that there were around 4,263 completions between July and September 2024.
The total value of the guarantees under the scheme stands at £1.4bn, with the overall value of loans supported by the scheme standing at £9.9bn.
The report added that mortgages used to finance properties through the mortgage guarantee scheme were worth £10.4bn in total.
The figures show that the mean value of property purchased or remortgaged through the mortgage guarantee scheme was estimated at £208,499, which compares to an average UK house price of £292,000.
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Most properties were valued between £150,001 and £200,000, making up 23% of completions.
The report found that an additional 51% of properties were valued between £125,001 and £250,000. Around 27% of mortgage completions were on properties valued at over £250,000.
Regarding property type, 35% of mortgage completions were on terraced houses, 30% were on semi-detached properties and 23% were on flats or maisonettes.
Approximately half of borrowers who completed a mortgage through the scheme had a household income up to £50,000, with the median household income standing at £52,000.
Households with an income over £80,000 made up 16% of all completions.
The report stated that around 86% of mortgage completions through the scheme were for first-time buyer purchases.
Looking at completions from a regional perspective, around 22% of the mortgage guarantee scheme completions took place in Scotland. Approximately 9% of all UK mortgage completions take place in Scotland.
Nearly three-quarters of completions took place in England, with the most popular regions being the North West at 12%, South East at 11%, and Yorkshire and the Humber, East Midlands and East of England making up 8% each.
Permanent mortgage guarantee scheme will not address affordability issues
Holly Tomlinson, financial planner at Quilter, said the latest figures show the “challenges that continue to face first-time buyers” and the risk that government schemes “could fall short of addressing the causes of the current housing crisis”.
She explained: “Mortgage completions supported by the scheme had tailed off significantly since it first launched, but these latest figures show there has been a slight increase in uptake. Between July to September 2024, 4,263 completions were supported.
“Comparatively, in the first quarter of 2024, just 1,613 completions utilised the scheme. This may be as a result of more people trying to push through completions ahead of the upcoming stamp duty changes.”
Tomlinson noted that with the average property value being significantly below the national average, it “raises questions about the scheme’s ability to cater to those in more expensive parts of the country”.
“One of Labour’s manifesto pledges was to launch a ‘Freedom to Buy’ scheme, which would effectively make the current mortgage guarantee scheme a permanent fixture. Progress on this launch has since gone quiet, and one reason for this may be the concerns that the initiative risks doubling-down on policies that fail to meaningfully address affordability issues or the structural flaws in the housing market.
“What’s more, the reliance on 95% loan-to-value mortgages leaves buyers with minimal equity, increasing the risk of negative equity should house prices fall. Schemes such as this are more of a sticking plaster than a solution, helping only a fraction of buyers and doing nothing to address broader affordability strains,” she noted.
Tomlinson said the government’s decision not to extend the increase to the stamp duty threshold for first-time buyers will “pile yet more pressure” onto this cohort.
“Those who have been scrimping and saving to build an adequate deposit will soon find themselves facing a hefty tax bill of up to £5,000, eroding affordability further and making homeownership even more expensive.
“For first-time buyers, what’s truly needed is a commitment to addressing housing supply. Without sufficient stock, no amount of demand-side intervention will solve the affordability crisis. It is vital that the government prioritises policies that tackle the imbalance between supply and demand, such as incentivising housebuilding, streamlining planning processes, and increasing investment in affordable housing.
“These structural changes, coupled with measures to reduce the tax burden on first-time buyers, would go much further in supporting aspiring homeowners than merely tinkering with schemes that perpetuate the status quo,” she said.
