The NewBuy programme will use an indemnity fund and government guarantee to back up 95 per cent loan-to-value mortgages.
The mortgages will reduce the size of required deposits, its proponents say. Property website Rightmove argues that the scheme will boost the opportunities for first and second time buyers.
Prime Minister David Cameron will state today: “This government doesn’t just talk about expanding home ownership: we’re making it happen.”
Up to 100,000 people, who would otherwise be unable to buy new properties, will be able to take advantage of the scheme, the government claims.