Ahead of Tuesday’s Mansion House speech, e.surv Chartered Surveyors has weighed in on the expected re-launch of the Mortgage Guarantee Scheme – now rebranded as Freedom to Buy initiative.
Rob Owens, Head of Research at e.surv, said:
“The return of the Mortgage Guarantee Scheme is a positive signal for buyers struggling with deposits, but it’s unlikely to be a game-changer. While it helps reduce risk for lenders and opens the door to higher LTV lending, the previous scheme, launched in April 2021, made up a small share of lending – less than 2% of completions over its duration.
“With mortgage rates falling and affordability rules easing, more buyers may now be able to take advantage of the scheme. While recent government policy has focused heavily on boosting housebuilding, demand-side support to ease affordability pressures has been in short supply. This scheme offers some help – but without broader action to make homeownership more accessible, its impact may remain limited.”
