A clutch of major high street banks have plunged back into the 95% mortgage market as part of the latest phase of the Help to Buy scheme.
A guide to the £12 billion Help to Buy scheme aimed at enabling homebuyers to obtain mortgages worth up to 95% of property values.
The costs will determine just how enthusiastic lenders are about jumping into the government's new scheme.
ITV News Economics Editor Richard Edgar has tweeted:
Carney announces new tool to manage lending by varying affordability tests for mortgages - ie loan to income ratio.
Carney says worried about the path house prices would take without this action. Essentially 'a stitch in time saves nine.' But cd do more...
Carney in no rush to call for an end to Help to Buy - says "it's very early days" but may step in "at any time" if he thinks it's a problem
Bank of England governor Mark Carney has rebutted claims by coalition ministers that it has the power to "turn off" the flagship Help to Buy initiative, amid fears the scheme could lead to an unsustainable housing bubble.
In a letter to Andrew Tyrie, chairman of the Treasury Select Committee, Mr Carney confirmed that the Bank's Financial Policy Committee (FPC) "does not have a veto on the scheme", though it can make recommendations on it.
Prime Minister David Cameron has lauded the Help to Buy scheme, which helps first-time homebuyers. ITV News Business Editor Laura Kuenssberg reports:
New figures show that average-income first-time buyers are making up the bulk of people taking up the government backed mortgage scheme.
Halifax mortgage director Stephen Noakes said their Help to Buy scheme has got off to a "really strong start." Speaking as the Prime Minister prepares to host a reception to highlight the benefits of the scheme, Mr Noakes said:
We're now one month into the scheme and we've seen a really strong start.
We're receiving a high level of interest but, more importantly, this is translating into full mortgage applications where borrowers across the country are now well on the way to buying their homes.
The applications show that through the scheme we're lending to borrowers who can afford a mortgage but, until now, have not had the necessary deposit.
Prime Minister David Cameron has said the figures showing average-income first-time buyers are making up the bulk of people taking up the government backed Help to Buy mortgage scheme are proof the policy is working.
The Prime Minister said initial figures showed Help to Buy - which critics say risks fuelling a new house price bubble - was helping the "hardworking people" it was aimed at.
He is hosting a reception at 10 Downing Street for some of those accepted for a total of £365 million of home loans in the first month of the controversial three-year offer in an effort to highlight its benefits.
Two mortgage providers have reported a strong uptake in the first month of the government's extended Help to Buy scheme.
RBS and Halifax said they have received a total of 2,384 applications, potentially worth £365 million in mortgages.
The first phase of Help to Buy was launched in April, but only provided help to first-time buyers buying new-build homes. The extended scheme applies to all buyers and all types of homes.
For some this should be called the "No help to buy" scheme.
Banks are today making it clear they have no intention of relaxing their strict acceptance rules.
That means you won't get one of the new loans if you have a bad credit record.
Nor will you get one if you fail the rigorous income checks designed to ensure you can afford the monthly repayments.
On an average property, that is likely to be around £1,000 a month if you're on a 95% deal.
These barriers to the scheme mean that many people's hopes will be dashed.
More action needs to be taken to tackle the lack of homes, according to surveyors and lenders.
Studies have pointed to demand outstripping supply in homes coming up for sale, amid fears the new Help to Buy scheme will fuel another housing bubble.
Peter Bolton King, from the Royal Institution of Chartered Surveyors, said the new phase of Help to Buy "exacerbates a situation that is already there. The underlying problem is a lack of supply".
But David Cameron said the scheme also helps with supply "for the simple reason that the builders won't build unless the buyers are able to buy".
As he launched the second stage of the Government's Help to Buy scheme, Prime Minister David Cameron tweeted a picture of himself with prospective homebuyers Chris and Kayleigh.