Definition
The scheme provides a government-backed guarantee to participating lenders on part of eligible high-LTV lending. Borrowers still take an ordinary mortgage from a lender and must meet the lender's affordability, credit, property and product requirements. The guarantee protects the lender, not the borrower's repayments.
Practical example
A 5% deposit does not guarantee access to a scheme mortgage because the lender still underwrites the applicant and property.
Why it matters
Compare scheme and non-scheme low-deposit products on total cost and eligibility.
Mortgage Guarantee Scheme guideSource and review
Reviewed 16 July 2026. Product criteria and rules can change.
HM Treasury: 2025 Mortgage Guarantee SchemeDiscuss your mortgage with a broker
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