The number of mortgages available to those with just a 5% deposit has rocketed by a massive 444% since the Government launched its Help to Buy Mortgage Guarantee Scheme.

The initiative, due to end in December 2016, has been crucial in boosting the number of these products on the market, according to Moneyfacts, helping first-time buyers and second steppers with limited equity in their homes.

As a result of the impetus from the Help to Buy scheme, the number of mortgages at 95% LTV has risen from 56 in October 2013 to 249 today.

Rates have also fallen during the time of the scheme, from 5.74% for a two-year fixed rate in 2013 to 4.33% today. Five-year fixes have fallen from 5.2% to 4.8% over the same period, said Moneyfacts.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “The Help to Buy Scheme was launched to kick-start the housing market and help first-time buyers get onto the property ladder. It has therefore been a key driver in normalising the high-LTV market, making it socially acceptable to lend to borrowers with a 5% deposit once again.

“With first-time buyers often considered the lifeblood of a healthy mortgage market, it’s great that there has been a significant boost in choice in this vital area. Furthermore, the cost of a mortgage at this LTV is now significantly cheaper; for example, the average two-year fixed rate mortgage has fallen by a substantial 1.41% since the launch of the scheme.”

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