Chancellor Rishi Sunak is set to unveil a new mortgage scheme during Wednesday’s Spring Budget, aiming to get more people on to the property ladder.

Under the new scheme, first time buyers and current homeowners will just need a deposit of 5% to secure a mortgage to buy a house worth up to £600,000.

The lending scheme will be available from April 2021 and the Government said it will offer lenders the guarantee to provide mortgages that will cover the remaining 95%.

Chancellor Rishi Sunak said:

“Owning a home is a dream for millions across the UK and we want to help as many people as possible. Saving up for a big deposit can often be difficult, and the pandemic has meant there are fewer low deposit mortgages available.

“So by giving lenders the option of a government guarantee on 95% mortgages, many more products will become available, helping people to achieve their dream and get on the housing ladder.”

The Spring Budget will be delivered on 3 March 2021.

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