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Mortgage Guarantee Scheme Advisors

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: July 6, 2021

There are mortgage advisors who arrange low-deposit mortgages every day, and they know the 2021 mortgage guarantee scheme inside out. In this guide, we’ll explain the benefits of using a broker who specialises in arranging mortgage guarantee scheme deals, how they can help you, and how to find the right advisor for your needs and circumstances.

Do I need a broker for the mortgage guarantee scheme?

Using a mortgage broker if you’re applying for a mortgage through the 2021 guarantee scheme isn’t a requirement, but it is highly recommended. A mortgage broker who specialises in arranging deals through the scheme could help you secure a lower interest rate or even rescue your application from the brink of collapse if there’s a risk of the lender declining you.

The value of a broker’s knowledge and expertise cannot be overstated. For many borrowers, they’re the key to saving time, money and potential disappointment, and for some, they’re even the difference between mortgage success and an outright rejection.

How can a mortgage broker help me?

If you’re thinking of using the mortgage guarantee scheme, a mortgage broker can offer you peace of mind by confirming if this is the best option. There are other ways to get a mortgage with a low deposit, and your advisor will compare the products available through the guarantee scheme with every alternative to make sure you’re getting the best deal.

They will search the entire market on your behalf and round up all of the best low-deposit mortgages that you qualify for. This will likely include broker-exclusive deals that aren’t available to the general public and other government schemes, such as Help to Buy.

In addition to finding the very best mortgage deal available to you, your broker can offer you bespoke advice, negotiate with the lender on your behalf and help you with your paperwork. You won’t have to lift a finger while they arrange the ideal mortgage for you.

What expertise do they have?

There are brokers in our network who specialise in low-deposit mortgages and they have in-depth knowledge of the new mortgage guarantee scheme.

The brokers have the following expertise and credentials…

  • Hold a CeMAP qualification or equivalent
  • In-depth knowledge about the mortgage guarantee scheme
  • Deep working relationships with the lenders participating in it
  • Can recommend the best alternatives to the guarantee scheme
  • Specialist knowledge about low deposit mortgages in general
  • Access to the whole of the market
  • Access to exclusive 95% loan-to-value products that aren’t available to the public

Your broker will give you a complete picture of the entire market, so your chances of securing the best rates that you qualify for would be much higher than they’d be if you were to limit yourself to the handful of banks participating in the mortgage guarantee scheme.

How do they get paid?

Your first consultation with a mortgage guarantee scheme broker will be free with no obligation to take things any further. During this chat, your advisor will explain exactly how they make their money and how much you’ll have to pay for their services.

Some brokers are paid in commission from the mortgage lender when the deal reaches completion, while others charge fees. Those which charge a fee usually base the amount on a percentage of the mortgage loan (usually less than 1%) or have a fixed rate.

On average, you can expect to pay between £400 and £500 for a mortgage broker, but keep in mind that they can help you save a lot more than that in the long run by getting you a better interest rate than the one you’d get if you were to go it alone.

Many brokers in our network operate on a success-only model and will refund any upfront charges if they fail to get you a mortgage.

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Can a mortgage broker help me if I have bad credit?

Yes. They can increase your chances of getting a mortgage through the guarantee scheme by matching your credit report with a lender whose appetite for risk allows them to overlook the type of bad credit you have. The mortgage lender they pair you with will likely be determined by the age, severity and reason for your adverse credit.

Given that all of the lenders offering mortgages under the guarantee scheme are high street banks, it can be more difficult to get a bad credit mortgage with them, especially one with favourable rates. Luckily, the specialist brokers we work with have access to every bad credit lender on the market, and they won’t limit their search to the guarantee scheme when searching for the best bad credit mortgage deal that you qualify for.

In addition to helping you find the right lender, your broker can also offer advice on optimising your credit report for a mortgage and completing your paperwork correctly.

Get matched with a specialist mortgage broker today

We can find one for you, for free. Our broker-matching service will take all of your needs and circumstances into account and pair you up with the advisor who’s best positioned to help you. This will be an expert we’ve handpicked because of their expert knowledge of the mortgage guarantee scheme and the best alternatives for low-deposit mortgages.

Call 0808 189 2301 or make an enquiry and we’ll set up a free, no-obligation chat between you and a broker who specialises in the mortgage guarantee scheme today.


How long will my application take?

The average mortgage application takes between 11 and 12 weeks to complete and applying through the mortgage guarantee scheme won’t make any difference to this timeframe, since there’s no extra paperwork for you to fill out.

Using a broker can, however, boost your chances of reaching completion faster than average, since they’ll help with your paperwork and make sure you find the right mortgage lender, first time.

Can a broker help me remortgage through the guarantee scheme?

Yes. The service they offer won’t be any different for a remortgage customer compared to someone who’s buying a property through the mortgage guarantee scheme. They will search the market for the best remortgage deals available to you, compare them with what’s on offer through the guarantee scheme and make sure you get the best rates.

Can a broker help me if I’m self-employed?

Yes, absolutely. The mortgage guarantee scheme is open to self-employed mortgage applicants and we have brokers in our network who specialise in mortgages for contractors, company directors, sole traders and other types of self-employed professionals. These brokers also help customers with small deposits every day.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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