Mortgage question
What is the Freedom to Buy mortgage scheme and how do I apply?
Freedom to Buy is the UK government’s permanent replacement for the Mortgage Guarantee Scheme, launched in 2025. Participating lenders — including Nationwide, NatWest, Halifax, Barclays, Santander, HSBC and Virgin Money — offer 95% LTV mortgages backed by a government guarantee. There’s no separate application: you apply for a normal 95% LTV product. Best rates in April 2026 are around 5.47% (2-year fix) and 5.60% (5-year fix).
What is Freedom to Buy?
Freedom to Buy is a permanent government guarantee scheme confirmed by Labour in the 2024 Autumn Budget and launched in 2025. It replaces the Mortgage Guarantee Scheme (MGS), which was time-limited and had been extended repeatedly since 2021. The government insures a slice of the lender’s risk on 95% LTV mortgages, which makes lenders comfortable offering them in volume rather than treating them as a special-case product.
From the borrower’s side, the experience is invisible — you apply for a 95% LTV mortgage with your chosen lender exactly like any other product. Behind the scenes, the lender ticks a box to enrol the loan in the scheme.
Who qualifies?
The eligibility rules are deliberately broad to cover most mainstream first-time buyers and movers:
- Residential only — no buy-to-let, no second homes
- First-time buyer or mover — both welcome
- Maximum purchase price £600,000 in the UK
- Repayment basis only — no interest-only
- Minimum 5% deposit (can be more)
- Standard affordability — lender’s normal income multiples and stress tests apply
You also still need to pass the lender’s credit check, affordability assessment and property valuation. Freedom to Buy isn’t a back door around weak credit or stretched affordability — it’s there to handle the deposit size, not the underwriting.
Which lenders offer Freedom to Buy?
The participating lender list has expanded steadily since launch. In April 2026 the most active are:
| Lender | Typical 2-yr fix (95% LTV) | Typical 5-yr fix (95% LTV) | Notes |
|---|---|---|---|
| Nationwide | ~5.55% | ~5.70% | Large panel, broker-friendly |
| Halifax | ~5.60% | ~5.65% | Fastest processing in 2026 |
| Barclays | ~5.58% | ~5.68% | Strong on new-build valuations |
| NatWest | ~5.62% | ~5.72% | Decent for contractors |
| Santander | ~5.65% | ~5.70% | Good on flats |
| HSBC | ~5.60% | ~5.68% | Direct-only in many cases |
| Virgin Money | ~5.63% | ~5.72% | Good self-employed criteria |
| Leeds BS | ~5.47% (best 2-yr) | ~5.65% | Often best-buy 2-year |
| Coventry BS | ~5.52% | ~5.60% (best 5-yr) | Often best-buy 5-year |
Smaller building societies dip in and out of the scheme, so the list moves. Confirm current participation with a broker before committing.
How do I actually apply?
There’s nothing unusual to do — just apply for a 95% LTV mortgage. The sequence is:
- Get your deposit ready (5% minimum of purchase price — so £15,000 on a £300,000 home). Check our how much deposit for a £250,000 house guide for reference figures.
- Get a Decision in Principle with a Freedom to Buy participating lender or via a broker.
- Find a property under £600,000 (or lower depending on your lender’s max loan).
- Submit a full application — lender picks it up as a Freedom to Buy case automatically.
- Valuation, offer, completion — identical to any other mortgage.
You don’t need to tick a “Freedom to Buy” box or fill out a government form. If you want a lender-by-lender feel for rates, run our mortgage comparison calculator or see the Freedom to Buy scheme guide.
How does it compare to Deposit Unlock and Skipton Track Record?
- Deposit Unlock — new-build only, funded by a developer insurance premium, narrower lender panel. See is Deposit Unlock better than Freedom to Buy.
- Skipton Track Record — 100% LTV for renters with strong payment history, Skipton-only. See what is Skipton’s Track Record mortgage.
- Standard 95% LTV — some lenders offer 95% products outside Freedom to Buy too; rates are broadly similar.
Most buyers with a 5% deposit on a property below £600,000 will end up on Freedom to Buy, because the participating lender list is the deepest.
Common misconception: “The government is giving me the deposit or part of the mortgage”
Freedom to Buy doesn’t give you money or reduce your monthly payment. The government just insures a slice of the lender’s exposure, which lets the lender price a 95% LTV product competitively. You put down your own 5%, you repay 100% of the loan, and you own 100% of the property from day one — no second charge, no equity share, nothing to redeem later. It’s a behind-the-scenes credit backstop for the lender, not a buyer subsidy. Information, not regulated advice — speak to a qualified mortgage adviser before applying.
Sources
Information, not regulated advice. Mortgage Notes is not an FCA-authorised mortgage adviser. For a recommendation on your specific circumstances, speak to an FCA-authorised broker.