A new mortgage guarantee scheme to help buyers with small deposits will be revealed on Wednesday at the Budget.
Chancellor Rishi Sunak is to reveal incentives to lenders, bringing back 95 per cent mortgages which "virtually disappeared" during the pandemic, according to HM Treasury.
The scheme is not restricted to first-time buyers nor to new-build homes, and will apply to purchases up to £600,000.
The government says this is making a reality of a pledge put forward by Prime Minister Boris Johnson last year to turn ‘Generation Rent’ into ‘Generation Buy.’
Johnson says: "Young people shouldn't feel excluded from the chance of owning their own home and now it will be easier than ever to get onto the property ladder.”
And Sunak adds: “Owning a home is a dream for millions and we want to help as many people as possible."
Low-deposit mortgages fell from favour during the pandemic as lenders became worried about house prices remaining solid as emergency measures are withdrawn later this year.
HM Treasury has been in discussion with lenders for some weeks and is to introduce the new scheme from next month, April.