The Government has announced a new Mortgage Guarantee Scheme designed to make homeownership more accessible. Here’s what it means — and how it could influence the property market in Thetford.
What is the Mortgage Guarantee Scheme?
This Government-backed initiative helps buyers who can’t save a large deposit. Under the scheme, lenders are encouraged to offer 95% mortgages, meaning buyers only need a 5% deposit.
Typically, most lenders only provide mortgages up to 90% of a property’s value. The Mortgage Guarantee Scheme bridges that gap by guaranteeing part of the loan, giving lenders more confidence to approve higher loan-to-value mortgages.
If a borrower defaults, the Government covers a portion of the lender’s loss, reducing risk for the bank or building society.
While the scheme mirrors a previous version that ran from 2021 to June 2025, this new iteration is permanent, offering long-term support to the housing market.
Who is eligible?
The scheme is open to both first-time buyers and home movers across the UK purchasing their main residence.
There’s no cap on property value, but applicants must meet each lender’s usual affordability and credit checks.
Borrowers apply for their mortgage as normal with participating lenders – not all banks have to offer it – and the lender handles the administrative side with the Government.
It’s worth noting that these mortgages won’t suit everyone, so buyers should seek independent financial advice before applying.
How could this impact the property market?
While the number of buyers directly using the scheme may be modest – the last version helped around 53,000 people over four years – the knock-on effects could be more significant.
By making it easier for first-time buyers to get on the ladder, the scheme can help unlock the market further up the chain. When first-timers buy, it enables second-steppers and downsizers to move, creating healthy movement throughout the market.
For areas like Thetford and Breckland, where affordability is still relatively strong compared to major cities, the scheme could further encourage younger buyers and families to make their first move — keeping local transactions active.
The bottom line
The new Mortgage Guarantee Scheme is another tool to support buyers struggling with deposits, and it could provide a small but valuable boost to overall market confidence.
If you’re thinking of selling in Thetford, now could be an ideal time to get an updated market valuation and discuss your next steps. And if you’re planning to buy, we can help you explore suitable homes — including those perfect for first-time buyers.
Article by Andrew Overman | Partner | Location Location East
