The New Mortgage Guarantee Scheme – What It Means for South Tyneside Buyers & Sellers
Big news for anyone thinking of buying a home in South Tyneside – the Government has announced a new, permanent Mortgage Guarantee Scheme.
If you’ve been struggling to save a big deposit, this could be the helping hand you’ve been waiting for.
So… what is the Mortgage Guarantee Scheme?
In simple terms, it’s a Government-backed scheme that makes it easier to get a mortgage with a smaller deposit.
Here’s how it works:
Normally, most lenders will only give you a mortgage for 90% of the property’s value – meaning you need a 10% deposit.
With the Mortgage Guarantee Scheme, lenders can now offer mortgages for 91%–95% of the property’s value.
That means you could buy with just a 5% deposit.
The Government steps in to guarantee part of the loan, making lenders more confident to say “yes” – but you’re still responsible for all your repayments.
Who can use the scheme?
✅ First-time buyers and home movers
✅ Anyone buying their main home (not buy-to-let)
✅ No cap on property value
✅ Must meet the lender’s usual affordability checks
Not every lender will offer it, so you’ll need to check who’s participating – and always get expert mortgage advice before committing.
Why this could get the market moving
The last time the Mortgage Guarantee Scheme ran (2021–2025), it helped 53,000 buyers get on or move up the property ladder.
But the real benefit? If more first-time buyers can buy, more existing homeowners can sell and move up – keeping the whole market moving.
Here in South Shields, Jarrow, Hebburn, Cleadon, Whitburn, and Boldon, that could mean:
More buyers competing for homes
Quicker sales
Stronger demand for all types of property
Thinking of Selling?
With this scheme opening doors for more buyers, now could be the perfect time to get your property on the market.
At Browns Estate Agents, we offer:
Free valuations - BOOK YOURS HERE!
Free advice
Award-winning, innovative marketing that gets results
A proven track record in achieving the best possible price
If you’re on the market with another agent and want a fresh start with a proactive, passionate team – now’s the time to make the switch.
Why Choose Browns?
🏆 Multiple years in the Top 3 Agents
🏆 Winners of Best in the Postcode – ESTAS (awarded by Phil Spencer)
🏆 Nominated for Best Customer Service – ESTAS Awards
🏆 Our valuer Emma Simpson nominated for a Special Award
🏆 Highly Commended – Negotiator Awards
🏆 Recognised leaders in innovation and technology
🏆 Trusted valuers for Homes Under The Hammer
We’re on track for our best year ever – and we’d love for your move to be part of that success story.
📞 Contact us today and let’s make your next move happen.
