The scheme launched in April 2021 and by 30 September 2022 had been used to support 30,398 mortgages, according to the Treasury.
First-time buyers made up 85 per cent of the purchases with the total value of loans supported by the scheme coming in at £5.6bn.
Buyers in the South East, North West and Scotland were most likely to have used the guarantee scheme, with those in London and Northern Ireland least likely.
Properties bought far below UK average price
The average property bought through the scheme was worth £194,300 – significantly less than the national average of £294,559.
The scheme is not available for buy-to-let mortgages or second homes and the property value must be £600,000 or less.
The government launched the scheme to help support borrowers with smaller deposits in the aftermath of the Covid crisis.
It is designed to encourage lenders to provider high loan to value mortgages of up to 95 per cent by guaranteeing a portion of the risk.
However, experts said the numbers show the initiative appears to have had a slow take up.
Closure at end of 2023
The scheme was initially due to finish at the end of last year but has now been extended until the end of 2023.
Karen Noye, mortgage expert at Quilter, said: “The 95 per cent mortgage guarantee scheme still remains a relatively unpopular scheme given this economic backdrop.
“Since the scheme’s launch in September 2022 only just over 30,000 mortgages have completed using the scheme.
“Some of the reasons for this include that some lenders have been reluctant to participate in the scheme, leading to limited options for potential borrowers.
“As such, borrowers have opted for 95 per cent deals outside of the scheme that might offer more competitive prices.
“95 per cent mortgages are also very expensive so many people may try and hold out until they can afford a slightly larger deposit.
“However, with inflation causing significant strain on finances for those desperate to get on the housing ladder these types of schemes may end up gaining momentum in the next year.”
