Prime minister David Cameron and deputy prime minister Nick Clegg are expected to announce support for a mortgage guarantee scheme for buyers of new homes today as part of its "radical" housing strategy.
The scheme will allow buyers in England to borrow up to 95% of the value of a new home at an acceptable interest rate - an opportunity denied many since the credit crunch three years ago.
Detail of the scheme are yet to fully emerge, but it is thought that both the developer and the government will put money into a fund for every new home sold through the scheme. This fund will underwrite the risk of the lender.
Such a scheme is seen by some as a potential "game changer" in new home delivery and has been the subjet of industry discussions for many months.
The housing strategy is also expected to include a £400 million fund to kick start housing schemes that are ready to go but lack finance.
