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Mortgage guarantee scheme reports nearly 40,000 completions since launch

  • 29/11/2023
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Mortgage guarantee scheme reports nearly 40,000 completions since launch
The Mortgage Guarantee Scheme has supported around 39,253 completions since it was launched in 2021, with the vast majority being first-time buyers.

According to the latest figures from the HM Treasury, this represents around 1.6 per cent of all residential mortgage completions during the period. The value of the mortgage loans is around £7.4bn and the value of the government guarantee is estimated at £1.1bn for the period. The total value of properties in the period is £7.8bn.

The figures show that in 2021 the scheme supported 12,230 completions, going up to 23,119 in 2022. This year so far, the number of completions is 3,824.


Average property value nearly £200,000

Breaking the figures down, the mean value of property bought or remortgaged with the scheme is £199,245, which compares to an average UK house price of £287,546.

The median property value comes to £175,000, reflecting a higher proportion of properties in the scheme coming from lower value bands.

Around a quarter of properties are valued up to £125,000, with a further 52 per cent sitting between £125,000 and £250,000.

Approximately 23 per cent of mortgage completions are on properties valued over £250,000.

Looking at property type, 35 per cent of properties are terraced houses, 30 per cent are semi-detached and 24 per cent are flats or maisonettes.

Detached houses came to seven per cent, bungalows three per cent and other types make up two per cent.


First-time buyers primary users of scheme

From a borrower perspective, over half of households who completed a mortgage with scheme have an income up to £50,000.

Those on higher incomes over £80,000 made up 13 per cent of completions.

The median household income for borrowers using the scheme is £48,769, with mean household income pegged at £53,158.

The report added that 86 per cent of mortgage completions through the scheme were first-time buyer purchases, equal to 33,766 completions overall.


Scotland represents nearly a quarter of completions

Looking at regions, England made up 69 per cent of completions since the scheme was launched, followed by Scotland at 23 per cent, Wales at five per cent and Norther Ireland at three per cent.

Within England, the North West made up the largest proportion of completions at 12 per cent followed by the South East at 11 per cent and the East Midlands and East of England at eight per cent respectively.

London was the lowest in England at four per cent.

In last week’s Autumn Statement, the Chancellor Jeremy Hunt said that the scheme would be extended to 2025.

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