A proposed new ‘Freedom to Buy’ mortgage guarantee scheme is unlikely to support prospective FTBs, according to Financial Conduct Authority (FCA) data analysed by Quilter.

Ahead of the General Election, the Labour Party promised that its policies would ‘support 80,000 young people to get on the housing ladder over the next five years.’

The new analysis9 reveals that since its launch in April 2021, the current mortgage guarantee scheme has supported only 44,368 people to get a mortgage. Of these, 86% were FTBs. The total number of people between the ages of 18 and 30 securing a mortgage was 350,092 in 2023, down from a spike of 401,665 in 2021.

Significantly, many prospective FTBs are f inding it harder to secure a mortgage, as higher rates add a major obstacle. If you’re hoping to buy your first home and need some mortgage advice, get in touch.

9FCA data analysed by Quilter, 2024