According to HM Treasury figures, mortgage guarantee scheme completions represent around 1.4% of all residential mortgage completions during the past three years.
The mortgage guarantee scheme was launched in 2021 following the retrenchment of lenders from higher-loan-to-value (LTV) lending.
The government offers lenders the option to buy a guarantee on mortgage loans where the borrower has a deposit of less than 10%.
The report noted that there had been 3,233 completions in the last quarter of last year, which is in line with the Q3 figure of 3,230.
HM Treasury said the total value of guarantees under the scheme stood at 1.6bn, while the overall value of loans supported by the scheme came to nearly £10.7bn. The value of properties came to around £11.3bn.
The changing role of the Bank of Mum and Dad
Sponsored by Aldermore
Average property value through mortgage guarantee scheme lower than UK average
Examining property values of houses bought under the mortgage guarantee scheme, around 23% were valued between £150,001 and £200,000.
Around 21% of the properties were valued at under £125,000, while 17% had a property value from £250,001 to £350,000.
The mean value of property bought or remortgaged through the scheme was £211,616, which is lower than the average UK house price of £268,000.
Looking at property type, terraced was the most popular at 35%, followed by semi-detached at 30% and flat or maisonette at 22%.
Just under half of households had income of £50,000 or less
Looking at borrower profiles, just under half of households who completed a mortgage with the mortgage guarantee scheme had a household income of £50,000 or under.
Around 20% had a household income of £40,001-50,000, and the same proportion had an income of £60,001-80,000.
Approximately 18% said their income ranged from £50,001 to £60,000.
The median household income for borrowers using the scheme is £52,848, while the mean household income is slightly higher at £58,627.
Completions-wise, around 86% of mortgage completions were for first-time buyers.
England accounted for 70% of mortgage guarantee scheme competition, with the North West making up the largest proportion at 12%, followed by the South East at 11% and Yorkshire and the Humber, the East Midlands and the East of England all at 8%.
Scotland made up 22% of completions, Wales accounted for 5% of completions and Northern Irish completions were estimated at 3%.
In its manifesto, the Labour Party said it would launch a Freedom to Buy mortgage scheme, which would be a permanent mortgage guarantee scheme to support lending at 95% LTV.
The current mortgage guarantee scheme is open until 30 June 2025, according to the HM Treasury website.
