“Before the initiative was announced, borrowers with a deposit of just 5 per cent would have struggled to find a mortgage as many of the products on offer were only available to local areas or required a parent or guardian to guarantee the loan.
“If a borrower managed to find a suitable offer, the cost of the mortgage repayments was high. Today, the cost of a mortgage at this LTV is substantially cheaper; for example, the average rate of a two-year fixed rate mortgage at 95 per cent LTV has fallen by a whopping 1.59 per cent since October 2013.”
Nelson added that the end of the scheme could hit borrowers, but that the current competitiveness of the market would help them.
She says: “They should take advantage of the deals available now to avoid disappointment in the future.”