The government is set to back high LTV mortgages, guaranteeing the portion over 80% (up to 15% of the total) in a bid to encourage banks to start offering 95% products again. So, buyers with just a 5% deposit will be able to apply for the new scheme, due to launch in April. It is only open to people purchasing a house to live in themselves, so second homes and buy-to-let properties won’t be eligible. The aim is to open up the housing market to a larger proportion of young people and first-time buyers, who often struggle to save for a deposit. Most major banks have committed to launching 95% deals from April and participating lenders will need to offer a five-year fixed-rate mortgage as part of their range. This will offer borrowers the security of predictable repayments for a longer period.