The government’s new Help To Buy scheme is set to boost lending to homebuyers with small deposits could push down interest rates on 95% mortgages to their lowest level since 2008.

The scheme could reduce interest rates for those with only 5% deposit from around 6%- to nearer 4%. In addition there should be far more high loan to value mortgages available.

The scheme is also avalable for home movers and is avalable for properties up to £600,000.