A new mortgage guarantee scheme to help buyers on to the housing ladder will be announced by ministers.
The scheme, which will be announced as part of Wednesday’s Budget, will allow buyers in England to obtain a mortgage with only 5% of the property’s value to put down as a deposit.
Under the proposals the Treasury will guarantee a portion of the loans on homes worth up to £600,000, encouraging banks and building societies to begin providing riskier, higher loan-to-value mortgages again.
The prime minister said the scheme would help “generation rent to become generation buy”. Industry commentators have said it will simply push up house prices.
