The Chancellor Rishi Sunak has helped first time buyers today and announced financial support for those with small mortgage deposits to get on the property ladder.

The scheme, which is available from next month, will help the tens of thousands of young buyers who were excluded from the market by the disappearance of 95% loan to value (LTV) mortgages at the start of the pandemic.

The scheme, which will require first time buyers to put together a 5% deposit, will be similar to the previous Help to Buy mortgage scheme.

It will run alongside the existing Help To Buy equity loan scheme which, although similar, is only for new build homes and is due to end in 2023.

First time buyers who can put together a 5% deposit will then have another portion of their mortgage guaranteed by the government for properties for sale up to £600,000.

“I want generation ‘rent’ to become generation ‘buy’ and these 95 per cent mortgage guarantees help to deliver this promise,” Prime Minister Boris Johnson says.

“Young people shouldn’t feel excluded from owning their own home and now it will be easier than ever to get on to the property ladder.”

Some 3,000 buyers are expected to be offered the loans every month which will apply to 86% of properties for sale in the UK.

With a 5% deposit, based on average house prices, Rightmove says many first time buyers will still have to save between £10,000 and £20,000 depending on where they live.

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Remember the information provided in this article is for information purposes only and should not be considered as advice.