Freedom to Buy
Permanent replacement for the Mortgage Guarantee Scheme — government-backed 95% LTV mortgages, launched 2025.
- Who it's for
- Buyers with a 5% deposit
- Status (April 2026)
- Recently launched / transitioning from predecessor scheme.
How it works
Lenders pay HM Treasury a fee for a partial guarantee on 95% LTV loans, which in turn keeps 95% products on the market through downturns. Aimed at helping ~80,000 buyers on to the ladder. Permanent (the previous MGS was extended year-by-year). Available on standard second-hand properties and some new builds — confirm which lenders are participating before applying; the panel changes.
Official source: https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/freedom-to-buy-mortgage-scheme/
Frequently asked
Is Freedom to Buy the same as the old Mortgage Guarantee Scheme?
It's the permanent successor. The mechanism is the same: lenders pay Treasury for a guarantee on part of a 95% LTV loan, which lets them offer those products through the economic cycle. The previous scheme ran in one-year extensions; this one is legally permanent.
Which lenders offer it?
The participating panel changes — major lenders dip in and out. Check with your broker or the scheme's official page before focusing on specific products, and always compare the Freedom to Buy 95% rate with any non-scheme 95% rate on the market.
Where this sits in your planning
Schemes are one input to a buying decision, not the decision itself. Model the same purchase with and without the scheme on the affordability calculator — the total cash required and the monthly payment are usually the deciders, not the headline scheme benefit.