Freedom to Buy
The government's permanent 95% mortgage guarantee scheme, how it works and who can use it.
Reviewed and signed off by Patricia Ogunfeibo
Solicitor and Chartered Tax Adviser, both non-practising. UK property since 1986.
Last reviewed
- Applies to:
- England
- Last reviewed:
- Next review:
- November 2026
Checked against GOV.UK, FCA and professional regulators. Sources are listed at the end of this guide.
Scheme and lender rules can change. How we label evidence.
Prefer to listen? This guide is available as audio, roughly 5 minutes of listening.
Executive Summary
Freedom to Buy is the government's permanent mortgage guarantee scheme, launched in July 2025. It replaced the previous temporary mortgage guarantee scheme and is designed to ensure that 95% loan to value mortgages remain consistently available, even during economic downturns. The government provides participating lenders with a guarantee on mortgage loans between 91% and 95% loan to value.
How Freedom to Buy Works
Freedom to Buy is the government's permanent mortgage guarantee scheme, launched in July 2025. It replaced the previous temporary mortgage guarantee scheme (which ran from 2021 to June 2025) and is designed to ensure that 95% loan to value mortgages remain consistently available, even during economic downturns.
The government provides participating lenders with a guarantee on mortgage loans between 91% and 95% loan to value. This reduces the risk for lenders and encourages them to continue offering mortgages to buyers with smaller deposits. You still apply for a mortgage in the normal way through a lender or broker.
| Feature | Details |
|---|---|
| Deposit required | As little as 5% of the property value. |
| Property price limit | £600,000 maximum. |
| Property types | Both new build and existing properties are eligible. |
| Who can use it | First time buyers and home movers. Not available for buy to let or second homes. |
| Mortgage type | Repayment mortgages only. Interest only, guarantor, and offset mortgages are not eligible. |
| Permanent scheme | Unlike the previous temporary scheme, Freedom to Buy has no end date. This gives lenders and buyers long term certainty. |
What Freedom to Buy Does Not Do
This is not a grant or an equity loan. It is a guarantee to lenders. You still need to meet the lender's affordability criteria, pass their credit checks, and repay the full mortgage. Mortgages at 95% loan to value typically carry higher interest rates than those with larger deposits.
Frequently Asked Questions
What is the Freedom to Buy scheme?
Freedom to Buy is the government’s permanent mortgage guarantee scheme, launched in July 2025. The government guarantees part of the loan for lenders on mortgages between 91% and 95% loan to value, so 95% mortgages stay available.
How much deposit do I need for Freedom to Buy?
From 5% of the property value, subject to the lender’s affordability and credit checks.
Is there a property price limit?
Yes. The property must cost £600,000 or less, and it must be a home you will live in rather than a buy to let or second home.
Can home movers use Freedom to Buy?
Yes. It is open to first-time buyers and existing homeowners moving home, on both new build and existing properties.
Does the government give me any money?
No. The guarantee is given to the lender, not to you. You borrow and repay the full mortgage in the normal way.
Which mortgage types are eligible?
Repayment mortgages only. Interest only, guarantor and offset mortgages are not eligible under the scheme.
Can I use Freedom to Buy on a new build?
Yes. Freedom to Buy covers both new build and existing homes, provided the lender takes part and the property costs £600,000 or less.
Action Checklist
Where this comes from
Each source is labelled so you can tell a government rule from market practice, and both from our own view. Read our evidence standard.
- Government ruleGOV.UK, mortgage guarantee scheme
- Regulatory ruleFCA Financial Services Register
- Our guidancetenant2owner editorial standards and our own interpretation
Your next steps
You do not need to read everything. Based on this guide, these are the useful next moves.
1. Do this now
Readiness CheckAround 90 seconds. See how close you are and what to fix first.
2. Read this next
Government Schemes
Not sure where this fits? See it in your Blueprint