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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 provides support for banking institutions to offer new 91% - 95% LTV mortgages
  • Mortgages issued under the scheme are backed by the UK Government. This means, if you were unable to pay back what you borrow, the UK Government would financially support the lender to help mitigate any losses.

How long does the mortgage guarantee scheme run for?

  • The scheme was launched in April 2021 and is open to new applications until 31 December 2022.
  • As part of the scheme, NatWest are offering a range of 91-95% LTV mortgages. 

Who can benefit from the mortgage guarantee scheme?

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 second home mortgage, or buy to let mortgage)
  • a repayment mortgage and not an interest only mortgage
  • taken out by an individual or individuals, not a business

Also, you will be unable to take out any additional borrowing on your mortgage for the next 7 years.

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 mortgage guarantee scheme questions

Are new build properties eligible for the mortgage guarantee scheme?

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. However, you can’t take advantage of the scheme with NatWest if you will own another property at completion of the purchase.