This meant first-time buyers and existing homeowners could own their dream home and only put down a minimum deposit of 5%.

This was introduced because during the covid 19 pandemic, home ownership soared but the lender attitude to risk meant that low Loan to Value deals were no longer available therefore, the government wanted to have a scheme in place to help potential buyers with a lower deposit, join the property ladder.

With the scheme being government-backed, this gave High Street Banks a security blanket, meaning low Loan to Value products were being brought back again, making mortgages within reach to most buyers.  The government offered the banks and building societies the guarantee they need to provide mortgages that cover the other 95%, subject to the usual affordability checks.