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HM Treasury: Contingent Liability

11 June 2025

Proposing MP
Emma Reynolds Lab
Wycombe
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

Issue Summary

The government is launching a new mortgage guarantee scheme to support homebuyers with smaller deposits.

Action Requested

The government will launch a permanent mortgage guarantee scheme in July 2025, allowing eligible first-time buyers and home movers to buy homes with as little as a 5% deposit. The scheme will be capped at £3.2 billion in contingent liability, with fees set to cover potential losses.

Key Facts

  • The new mortgage guarantee scheme will launch in July 2025.
  • Eligible buyers can purchase homes with a minimum deposit of 5%.
  • The government's contingent liability is capped at £3.2 billion.
  • Guarantees issued under the scheme will be valid for up to seven years after the mortgage origination.
  • HM Treasury has approved the proposal in principle and laid a Departmental Minute in Parliament.
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