Mortgages requiring just a 5% deposit have been reintroduced - in what is set to be a boost for first-time buyers trying to get onto the property ladder.

The average price tag on a home in the country has jumped by nearly £7,000 in the space of the month.

That has pushed average seller asking prices to a new record high of £327,797 in April, according to property website Rightmove.

But chancellor Rishi Sunak has revealed there will be a new mortgage guarantee scheme starting this month.

While the pandemic has given some first-time buyers time to save up cash, many have been unable to climb on the property ladder without finding at least a 10% deposit.

Now, this new scheme will provide a guarantee to lenders who offer mortgages to people with a deposit of just 5% on homes valued up to £600,000.

Buyers will also be able to fix their initial mortgage rate for at least five years if they want.

The scheme will be available for new mortgages up to December 31, 2022.