Navigating the 95% Mortgage Guarantee Scheme: First-Time Buyers’ Guide
- emily5888
- Jul 20
- 1 min read
New to the 95% mortgage guarantee scheme? Discover who qualifies, what to watch out for, and how to buy with just a 5% deposit in 2025.
If you’re a first-time buyer, the dream of owning a home might feel out of reach, especially with rising house prices and affordability tests.
The good news? The government has made the 95% Mortgage Guarantee Scheme a permanent feature.
What Is the 95% Mortgage Guarantee Scheme?
This scheme encourages lenders to offer 95% loan-to-value (LTV) mortgages by guaranteeing a portion of the loan. That means you only need a 5% deposit.
Who Is Eligible?
First-time buyers and home movers
Properties under £600,000
Residential homes (not Buy to Lets or second homes)
How It Helps
Lower deposit barrier: Perfect for renters with limited savings
Competitive rates: Wider lender availability
What to Watch Out For
Higher repayments: 95% LTV = more to pay monthly
Affordability hurdles: Strong income proof required
Our Top Tip
Use your rent-payment history and clean credit to boost lender confidence. We help you position your finances to meet criteria.
Ready to buy with 5% deposit? Contact us to find which lender's are available to you www.modelfs.co.uk.contactus
Risk warning: Your home may be repossessed if you do not keep up repayments on your mortgage.
“I think these loan programs could be really useful for your visitors. The Hard Money Loan Missouri works well for investors who need quick access to cash. The DSCR Loan Indiana makes it easier for landlords to qualify based on property income. For short-term financing, the Bridge Loan New Jersey is a solid choice, and Alabama investors may find the DSCR Loan Alabama program especially helpful for scaling rental properties.”