Bring vinegar and sugar to boil in heavy large nonaluminum saucepan, stirring until sugar dissolves. Reduce heat and simmer 10 minutes. Remove from heat.
Toss apples and lemon juice in large bowl. Combine garlic, ginger, salt and red pepper in processor; blend until finely chopped. Add apple and garlic mixtures, raisins and mustard seeds to vinegar. Simmer until apples are tender and chutney thickens, stirring occasionally, about 45 minutes. Place in bowl. Cool. Cover; chill. (Can be made 1 week ahead. Keep chilled.)