Housing Minister Nelson McCausland has welcomed the early launch of a Help to Buy mortgage guarantee scheme, which will be available across the United Kingdom from this week.
A clutch of major high street banks plunged back into the 95% mortgage market yesterday lured by £12bn worth of guarantees from the Government.
Treasury officials believe the initiative will cost taxpayers nothing as lenders will pay a fee for the guarantee, which will underwrite up to 15% of a property's value.
Instead it is buyers who will face a premium for being able to own their own homes with a deposit of only 5%, as borrowing rates look set to be much more costly than for smaller loan-to-value (LTV) deals. More than 40% of the banking market are committed to the initiative.
Welcoming the scheme, Minister McCausland said: "This scheme should help to give many more local people an opportunity to enter the housing market."