Commons Sense

Hansard-based summaries and metrics

<-- Back to proposed bills

Contingent Liability Update

20 December 2022

Proposing MP
Andrew Griffith Con
Arundel and South Downs
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

Issue Summary

The Mortgage Guarantee Scheme is being extended for an additional year.

Action Requested

HM Treasury is extending the scheme to continue supporting homebuyers with smaller deposits until December 31, 2023. The maximum contingent liability cap is reduced from £3.9 billion to £3.2 billion.

Key Facts

  • HM Treasury launched the Mortgage Guarantee Scheme in April 2021.
  • The scheme has supported over 24,000 households since its launch last year, with 85% being first-time buyers.
  • The original planned closing date was December 31, 2022; now extended to December 31, 2023.
  • Guarantees issued under the scheme are valid for up to seven years after the mortgage is originated.
  • Participating lenders pay HM Treasury a fee set at a level not constraining their access to the scheme.
  • The contingent liability cap is reduced from £3.9 billion to £3.2 billion.
▸ Assessment & feedback
Summary accuracy