Buying your own home with a deposit as low as 5%

The Mortgage Guarantee Scheme

What is the mortgage guarantee scheme?

  • The UK government mortgage guarantee scheme was launched in April 2021.
  • The scheme provided support for banking institutions to offer 91% - 95% LTV mortgages
  • Mortgages issued under the scheme were backed by the UK Government. This meant, if you were unable to pay back what you borrow, the UK Government would financially support the lender to help mitigate any losses.

NatWest is no longer taking part in the UK government Mortgage Guarantee scheme

  • The scheme was launched in April 2021 and was open to new applications until 22nd December 2022.
  • Although we're no longer part of the scheme, we are still offering 95% mortgages.

Can I get a 95% mortgage?

While 91-95% LTV mortgage rates are available, as with all mortgage applications, there are a number of checks we consider before we may be able to offer you a mortgage. We have to make sure that your financial and personal circumstances mean you should be in a good position to pay back what you borrow.

As well as these checks, to potentially be eligible for a 95% mortgage, it must be:

  • for a property valued at no more than £600,000
  • not for a new build property
  • a loan-to-value (LTV) of between 91% and 95%
  • a residential mortgage (i.e. not a buy to let mortgage)
  • a repayment mortgage and not an interest only mortgage
  • taken out by an individual or individuals, not a business.

What does 'LTV' mean?

It means 'loan-to-value' and is the percentage of the property's value that's being covered by the mortgage. You may see 95% mortgages described as '95% LTV'. 

If your mortgage is £200,000, and your property is valued at £250,000, your LTV is 80%. 

LTV is a percentage figure that reflects the amount of your property that is mortgaged. The remaining amount is yours and is usually referred to as your home equity.

Buying your first home?

It can be daunting when you are looking to buy your first home. There are lots of things to think about and consider.

Why not take a look at our first time buyer guide to help get you on the path to buying your own home, or see how much you may be able to borrow with our mortgage calculator.

Other frequently asked questions

Are new build properties eligible for 95% mortgages?

No, with NatWest, we are not currently offering 95% LTV mortgages on new build properties.

Is the mortgage guarantee scheme the same as Help to Buy?

No. The mortgage guarantee scheme is a government-backed home ownership scheme, designed to help people in the UK get onto the housing ladder.

There are other schemes with similar objectives, some of which fall under the 'Help to Buy' branding. These include the 'Help to Buy: ISA' and 'Help to Buy Equity Loan'. However, the mortgage guarantee scheme is not branded 'Help to Buy'.

You can learn more about some of the different home ownership schemes.

Is the mortgage guarantee scheme just for first time buyers?

No, the scheme is not just for first time buyers.