Over 180,000 loans could be secured thanks to the government’s Help to Buy scheme, which launches today (October 8th).
Two banks – Lloyds Banking Group and Royal Bank of Scotland – will initially be taking part in the initiative, while the further pair of Aldermore Bank and Virgin Money will also offer the service to customers from January.
The second phase of Help to Buy was originally due to be launched in the new year, however, prime minister David Cameron announced that it would be brought forward during the Conservative Party conference at the end of September.
Under the scheme, potential buyers will be able to purchase a property valued at £600,000 and under with just a five per cent deposit, with the government then guaranteeing a further 15 per cent.
It is aiming to make it easier for those looking to get on the property ladder by allowing them access to cheaper mortgage deals, as well as reducing the amount needed for a deposit.
Over £12 billion of mortgage guarantees will be provided over the next three years.