Welcome back to another week of Padarn Property blogs! This week we’ll be discussing the new ‘Freedom to Buy’ scheme, which has been proposed to rebrand the ‘Mortgage Guarantee Scheme.'

There’s a moment in life – sometimes fleeting, sometimes persistent – when you stand outside a house and think, “Could this be mine?” For so many would-be homeowners in the UK, that thought has remained just that. Rising house prices, stagnant wages, and ever-demanding deposit requirements have put that first step on the ladder just out of reach for countless people.

So, when the government announced the Freedom to Buy mortgage scheme, it sparked real conversation in the property industry.

So, what is Freedom to Buy?

Freedom to Buy is essentially a rebranded extension of the Mortgage Guarantee Scheme, first introduced during the pandemic. It allows buyers to purchase a property with just a 5% deposit, while the government backs part of the mortgage to reassure lenders. The idea? Reduce the risk for banks, increase options for buyers.

This is not a help-to-buy equity loan. There’s no government share in your home. You own 100% from day one. That simplicity is one of its strengths.

But while the headlines focus on affordability, what really interests me is the emotional impact – because buying a home isn’t just financial, it’s deeply personal. It's a statement of independence, security, and yes, freedom.

The Good

For many, the Freedom to Buy scheme might be the bridge between renting indefinitely and stepping into homeownership. With rents skyrocketing and savings accounts barely growing, scraping together a 10–15% deposit just isn’t realistic for everyone. A 5% deposit feels more achievable. It’s not easy – but it’s possible.

Lenders are already on board. Big names like NatWest, Barclays, and Halifax have products tied to this initiative, and their rates have become more competitive as confidence has grown.

And in a climate where we all need a bit of hope, Freedom to Buy at least gives buyers a fighting chance.

The Questions

But here's the rub: Can you afford the mortgage repayments once you get the keys? A 5% deposit might get you in the door, but the monthly cost could still stretch you – especially as interest rates remain unpredictable.

There’s also the risk of negative equity if house prices drop and you’ve bought with only a small buffer. I always advise people: just because you can buy, doesn’t mean you should – not yet. Timing matters. Your job security, future plans, and emotional readiness all count just as much as your bank balance.

And what about the wider market impact? Schemes like this can inflate demand, pushing prices up – especially in hotspots. So, it helps some buyers, but might make things harder for others. As always in property, there are no silver bullets.

My Take

Personally, I think Freedom to Buy is a welcome option – but not a cure-all. It’s like offering a ladder to someone at the bottom of a well. It helps, yes, but it doesn’t change the fact the well is deep. The bigger issues – housing supply, affordability, and planning reform – still need attention.

But for the right buyer, in the right circumstances, this scheme could be the start of something life-changing. And isn’t that what homes are really about?

If you’re considering it, take the time to speak with an independent mortgage broker. Talk to a surveyor or a local estate agent, who can give you a clear-eyed view of the property’s value and condition. And don’t rush. Owning a home is about more than getting on the ladder – it’s about climbing it safely and securely.

If you have any queries or are currently looking to buy or sell a property, get in touch with us today!

Until next time, happy house hunting!

Ben McEvoy