5% deposit mortgage scheme extended until next year - how it works explained

The mortgage guarantee scheme, which helps buyers purchase a property with a 5% deposit, is being extended by a year.

The scheme gives buyers access to 95% loan to value (LTV) mortgages on properties costing up to £600,000.

The Government then provides the guarantee for the mortgage to reduce the risk for the lender - for example, if the property is repossessed.