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Help to Buy scheme launched

The second phase of the Government's controversial £12 billion Help to Buy scheme is launched today . It is intended to help first time home buyers obtain mortgages worth up to 95 per cent of property values

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How does 'Help to Buy' work?

The Government's new Help to Buy scheme will mean homebuyers will only have to find as little as five percent to secure a mortgage.

Someone trying to buy a £200,000 house currently needs to save up a deposit of £40,000.

Under the new scheme, leading banks will offer a range of new Help to Buy mortgages - up to 95 per cent of the property's value - for homes worth up to £600,000.

Homebuyers will be able secure a mortgage with a deposit of as little as five percent. Credit: Press Association

Under the scheme, buyers will only need a deposit of as little as five per cent.Depending on the size of deposit, the government will then guarantee up to 15 per cent of the property's value, in return for a fee from the lender.

Lenders can start offering the mortgages from today, and they will be guaranteed by the Government from January 2014.

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