What the End of the 95% Mortgage Guarantee Scheme Means for First-Time Buyers

A key support scheme has ended. So, what happens next? 

As of 30 June 2025, the government’s 95% mortgage guarantee scheme has officially ended. Since its launch in 2021, the scheme has helped thousands of first-time buyers purchase homes with just a five percent deposit, giving many the chance to get on the property ladder despite high prices and rising living costs. 

Now that the scheme has closed, questions are arising about what this means for new buyers, how lenders are responding, and what alternative options are available for those who still need a low-deposit mortgage. 

What the scheme offered, and why it mattered 

The 95% mortgage guarantee scheme was introduced to restore confidence in high loan-to-value lending during a period of economic uncertainty. It encouraged lenders to offer 95% LTV mortgages by providing the government’s backing in case of borrower default. This reduced the risk for lenders, resulting in a wider range of options for buyers with smaller deposits. 

With the scheme no longer in place, lenders have lost that layer of reassurance, and some are already reviewing their product offerings. While a few high street banks and building societies may continue to offer 95% mortgages, many are expected to reduce availability or tighten lending criteria in the coming weeks. 

What First-Time Buyers Can Expect Now 

The end of the scheme may make it more difficult for buyers with limited savings to access favourable mortgage deals. Without the government guarantee in place, lenders are likely to take a more cautious approach. This could mean fewer 95% mortgages on the market, stricter affordability assessments, and a heavier focus on the strength of an applicant’s credit profile and income stability. 

Those most affected are likely to be buyers without family support, individuals with irregular or self-employed income, and anyone purchasing in areas with higher property values, where affordability is already stretched. 

Are There Still Alternatives? 

Fortunately, the end of the scheme does not mean the end of low-deposit mortgage options altogether. Some lenders have continued offering 95% mortgages outside of the government scheme and may still do so, although borrowers should expect more scrutiny during the application process. 

Shared ownership schemes remain a strong option for those unable to fund a full deposit. The First Homes scheme also offers discounted properties to eligible local buyers, particularly key workers and first-time purchasers. Family support through gifted deposits or joint borrower sole proprietor arrangements continues to be an important route for many. 

Why Advice Matters More Than Ever 

As the mortgage landscape adjusts to the scheme’s closure, speaking to an experienced mortgage broker is one of the best ways to explore your options. Understanding which lenders are still active in the 95% space—and what they are looking for—can make all the difference to your application. 

At Altura Mortgage Finance, we specialise in helping first-time buyers find the best path to homeownership. Whether you are ready to apply now or simply want to understand your future options, we are here to support you with clear, personalised advice.