First-time buyers will be able to get o the property ladder with just 5 per cent deposit under a government scheme launched yesterday.
High street banks including Lloyds, Santander and Barclays will start offering state-backed mortgages worth up to 95 per cent of the value of a home. The scheme, announced by Chancellor Rishi Sunak in the Budget, is designed to encourage banks to offer low-deposit mortgages by ensuring a government guarantee in case of losses.
Both first-time buyers and currant home owners will be able to access the mortgages to but houses worth up to £600,000. It comes as the average price of a UK property coming to market has hit an all-time high of £327,797, according to research from property website Rightmove.
Housing Secretary Robert Jenrick said ministers want to turn 'generation rent' into 'generation buy'. He added: 'For too many people, no matter how hard they work, home-ownership can seem out of reach. One of the biggest divides in our country has been between those who can afford their own home and those who cannot. That's why we are determined to do everything we can to help hard-working families and first-time buyers get their feet on the housing ladder in an easy and affordable way, to level up this country.'