Mortgage Guarantee Scheme
Available through participating lendersExplore a smaller-deposit mortgage with a clear view of the monthly commitment. The permanent Mortgage Guarantee Scheme, also known as Freedom to Buy, supports participating lenders offering eligible buyers mortgages with deposits as small as 5%.
United Kingdom · Guidance checked 30 October 2026
- Deposit
Eligible mortgages can start with a 5% deposit, subject to the lender's criteria.
- Who it supports
First-time buyers and home movers buying a home to live in.
- What it guarantees
Part of the lender's potential loss. You remain responsible for your mortgage.
How the scheme works
The government provides a guarantee to participating lenders to support lending above 90% and up to 95% of a property's value. The 2025 Mortgage Guarantee Scheme has been permanently available since July 2025 and covers eligible buyers across the UK.
The guarantee operates between the lender and the government. It does not pay your deposit, make your monthly payments or cancel what you owe. You apply for a mortgage and repay it under the lender's terms. A smaller deposit can make the starting point more manageable, but the full borrowing commitment still needs to work for you.
Check the buyer, property and mortgage together
Eligible first-time buyers and home movers can be considered. The mortgage must be a repayment loan for an eligible residential purchase. The lender assesses income, regular spending, credit history and the property before making a decision; the guarantee does not remove these checks.
The current Treasury rules exclude shared ownership and shared equity purchases, buy-to-let, interest-only, offset and guarantor loans. Individual lenders can have additional property and application criteria. Check the actual mortgage available for your circumstances rather than assuming every 95% mortgage uses the scheme.
Look beyond the deposit
Compare the monthly payment, interest rate, product fees, mortgage term and any early repayment charge. Allow separately for legal work, surveys, moving costs and ongoing ownership costs. A longer term can reduce the monthly amount while increasing the interest paid overall.
A small deposit also means a smaller equity cushion if the property's value falls. MoneyHelper explains that smaller-deposit mortgages may carry higher rates. Compare the whole deal and your future budget, including what happens when an initial rate ends.
Keep the different routes clear
The Mortgage Guarantee Scheme is also described as Freedom to Buy. It is a different arrangement from the First Homes discount scheme, buying a share through Shared Ownership, or the newly announced Your First Home equity-loan scheme. Their eligibility rules, ownership arrangements and future costs need separate consideration.
Bring the home price, available deposit, source of each deposit contribution and your target monthly budget. Jack can review the mortgage options alongside the rest of your purchase plan. If some savings are held in a Lifetime ISA, check its purchase and withdrawal conditions before counting those funds as available.
The next steps
Set the starting budget
List your deposit, monthly spending and buying costs, keeping a practical cash buffer in view.
Compare suitable lending
Review lender criteria, the property, monthly payments and total costs before choosing a mortgage route.
Prepare the application
Gather income and deposit evidence, then confirm the lender's requirements and purchase timetable.
What to prepare
Tick the points you have covered before a conversation. These are preparation notes; ticking them does not confirm eligibility.
Your questions, answered
Does the government pay my deposit?
No. You provide the deposit. The government guarantee covers part of a participating lender's potential losses under the scheme; it is not a cash contribution to your purchase.
Is it only for first-time buyers?
No. Eligible home movers can also be considered. The lender must still be satisfied with the mortgage, your circumstances and the property.
Do I apply to the government?
You apply for a mortgage through a participating lender, directly or with an adviser. There is no separate buyer application for a government deposit payment.
Does a 5% deposit guarantee approval?
No. A deposit is one part of the application. The lender still carries out its affordability, credit and property checks, and may decline the application.
Official guidance
Checked 30 October 2026. Availability, rules and lender criteria can change. Follow the official guidance and confirm the position before committing.
Other routes to consider
Lifetime ISA for your first home
Understand the savings bonus, the timing rules and the current withdrawal charges.
Explore the guide
Shared Ownership mortgages
Buy a share and pay rent on the rest. See how the full housing budget fits together.
Explore the guide
First Homes scheme
A discounted home for eligible first-time buyers, with conditions on who can buy and sell.
Explore the guideLet’s put your plans in context.
Tell me where you would like to buy, how far you have got and which route interests you. We can work through the questions and the next useful step.