Last updated on August 18th, 2015 at 02:23 pm

The Help to Buy Scheme will come into force in 2014 and will help those people who are finding it difficult to stump up the 20% deposit that most mortgage lenders require.  Unlike the Newbuy Scheme which was announced last year to help people buy new houses, this new scheme is available to those looking to buy new or old properties.

The scheme, which holds a pot of £130 billion will guarantee 15% of the property value where the purchaser has paid a deposit of 5%, so the lender will lend 95% of the property value rather than the usual 80% – knowing that the difference is guaranteed by the government.

Mr Osborne also announced another new government initiative to help people wanting to buy new homes valued up to £600,000, whereby it will offer interest free loans of up to 20% of the value of the new property if the buyer deposits 5%.

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