What is the mortgage guarantee scheme?
The scheme is open for new mortgage applications from April 2021 to December 2022. It provides a guarantee for lenders to offer mortgages up to 95% loan to value (LTV). So you could still buy a new home even if you don’t have a large deposit.
Mortgages under the scheme are backed by the UK government. This means if you couldn’t pay back your mortgage, the government guarantee would protect the lender against a proportion of losses. You are responsible for paying your mortgage under this scheme in exactly the same way as any other mortgage.
Am I eligible?
To apply for a Santander mortgage under the mortgage guarantee scheme:
- you must be buying a previously owned house or flat (it’s not available on newly built properties)
- the maximum property value is £600,000 if you’re buying a house, or £400,000 if you’re buying a flat
- you’ll be living in the property (it won’t be a second home or Buy to Let)
- you won’t own any other properties in addition to the one you’re buying
- you’ll have a deposit of between 5% and 9%
- your mortgage will be taken on a repayment (capital and interest) basis
- you’ll confirm you don’t have any other government subsidies, e.g. shared equity, Shared Ownership, or any part of your deposit funded by a local authority.
What do I need to know before I go ahead?
If you’re applying for a mortgage through the mortgage guarantee scheme, please make sure you read our factsheet. It tells you more about the scheme criteria, important considerations and FAQs.
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Ways to apply
At your local branch
Request a telephone appointment with a branch Mortgage Adviser
Speak to a Mortgage Adviser who can advise you on the right mortgage
0800 068 6064
Lines are open 9am to 7pm Monday to Friday