The government has reiterated its pledge to launch a permanent mortgage guarantee scheme aimed at helping families and renters to buy.

But there are few details available, with the government claiming these will be released “in due course” – they will replace the existing Mortgage Guarantee Scheme, which was due to expire this year. 

By making the Mortgage Guarantee Scheme permanent and comprehensive, the government claims banks and building societies will have long-term confidence to continue offering low-deposit mortgages.  

In addition the government has written to the Financial Conduct Authority expressing its support for the authority’s plan to review mortgage rules. 

A statement says: “The government has made clear it wants the FCA’s review to be as ambitious and rapid as possible to help as many people as possible to achieve the dream of owning a place of their own.”

The number of first-time buyers fell to a 10 year low in 2023 and today’s under 30s are less than half as likely to be home owners than those at the same age in 1990.  

City Minister Emma Reynolds says:

“Simplifying responsible lending rules and putting in place a permanent mortgage guarantee scheme shows our commitment to making the dream of owning a home a reality. I will work closely with regulators and industry to get this done quickly and in a way that supports as many people as possible.”

And Housing Minister Matthew Pennycook adds: “The affordability challenges facing first-time buyers mean that we now have a generation locked out of homeownership . This government is determined to change that, ensuring that young families and hardworking renters can buy a home of their own.”

This commitment to a new Mortgage Guarantee Scheme means first-time buyers, including young families, will be able to take that crucial first step onto the property ladder, with only a small deposit, tackling one of the biggest barriers to homeownership and giving them the stability they need to plan for the future.