The government's 95 per cent mortgage scheme begins today, in a bid to make getting on the property ladder easier for thousands of Brits.
The scheme, announced last month by chancellor Rishi Sunak, means it will now be possible to buy a home with a five per cent deposit.
Recent figures reveal demand for home ownership has soared during lockdown, with nearly 80 per cent of private renters now saving for a deposit.
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Meanwhile, according to Rightmove, the national average price of property coming to market has also hit an all-time high of £327,797, following a 2.1 per cent jump per month.
The new government scheme will allow buyers (both first time and current homeowners) to purchase with just a five per cent deposit, meaning those looking to buy a property should be able to do so more quickly.
The government will offer lenders the guarantee to cover the remaining 95 per cent, should the buyer default on monthly mortgage payments.
Buyers will still have to go through all the usual affordability checks, but saving for a hefty deposit won't be as difficult for first time buyers desperate to get on the property ladder.
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The idea was initially proposed in October last year, with prime minister Boris Johnson promising to "turn Generation Rent into Generation Buy".
But are 95 per cent mortgages all they are cracked up to be?
Well, experts have warned buyers to be extra cautious before signing up for the scheme, which is being rolled out by banks including Lloyds, Natwest, Santander, Barclays and HSBC.
While the new initiative might make it easier to actually buy a property, having a lower deposit will mean monthly repayments are significantly higher.
"Only paying a small deposit will have a knock-on impact on monthly repayments," John Ellmore, director of NerdWallet, told Tyla. "Firstly, the higher the percentage of the property's value that is borrowed, the higher the interest rate a buyer is likely to be charged.
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"This could mean that those who took out a 95 per cent mortgage could end up paying more over time than those who saved for a larger deposit."
Speaking about the new scheme, Rightmove's Director of Property Data Tim Bannister said: "The new mortgage scheme could help some first-time buyers bring their plans forward if they have a lower deposit but are still able to pass the affordability checks, and will be welcomed by those who last year we're struggling to come up with a 15 or 20% deposit.
"Although the number of new properties coming to the market is improving, it's still nowhere near enough to satisfy the buyer demand that is already at record levels, and so more people choosing to trade up will be vital to open up more choice at the start of the property ladder.
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"The combination of not enough stock and high demand will help underpin prices, and over the past five years asking prices of a typical first-time buyer home have already increased by £23,000 on average, so those who can now afford to buy a home will be trying to make the move quickly in case prices rise further."
You can find out more about the new scheme here.
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