The government has announced further details of its new mortgage guarantee scheme during today's Budget.

The scheme is set to launch to lenders from April and will allow both first-time buyers and current homeowners to purchase properties up to £600,000 with a 5% deposit.

Speaking during the Budget, Rishi Sunak confirmed that several of the UK’s largest lenders including Lloyds, NatWest, Barclays, Santander and HSBC will be offering the mortgages from next month, with further lenders including Virgin Money to follow shortly after.

Michelle Andrews, HSBC UK’s head of buying a home, said: “We’re delighted to once again be supporting the Government Help to Buy scheme. Here at HSBC UK we’re committed to supporting people to get on to, or move up the property ladder. This scheme will make a real difference in enabling more first-time buyers and home movers, with a minimum of 5% deposit, to get the keys to their new home, and we’re excited to play our part in it.

"Our team of dedicated mortgage advisors will be ready to provide expert advice and guidance on this scheme from the 19 April.”

A Virgin Money spokesperson said: “We welcome the Government’s support for borrowers with a smaller deposit and we’re pleased to say that we will be an active participant in the Help to Buy Guarantee Scheme. We know how important it is that first time buyers get the right support and we look forward to launching Virgin Money Help to Buy mortgages to support this segment of the mortgage market.”

Guy Gittins, CEO of Chestertons, commented: “Any additional assistance for first-time buyers is always welcome. First-time buyers were hit particularly hard by the lack of mortgage availability during the pandemic. As such, the government’s introduction of a 95% LTV mortgage presents good news for first-time buyers, keen to get on the property ladder. Another audience likely to benefit are existing home owners wanting to trade up or re-mortgage to release equity.”

“Whilst the mortgage offering is likely to be in high demand and have a positive short-term impact on the UK’s economy, the loading of more debt onto private households is a risky undertaking and the detailed Terms and Conditions are yet to be released. We do hope that lenders are bound to tight due diligence checks that ensure borrowers are financially able to carry the risk.”