Mortgages worth 95% of the price of newly built homes are to be made available under a new loan guarantee scheme supported by the Government and developers.
The NewBuy Guarantee is targeted at 100,000 prospective and existing homeowners who cannot afford the high deposits required for 80% mortgages.
The deposit for a £200,000 home would fall from £40,000 to £10,000 for those who benefit from the scheme.
Prime Minister David Cameron said: "Strong families and stable communities are built from good homes. That's why I want us to build more homes and I want more people to have the chance to own their own home.
"It's no good hoping people will climb the property ladder if the bottom rung is missing. Affordable properties and available mortgages are vital."
The Government will also increase the maximum discount for council tenants to buy their houses to £75,000. Read More