Just 15% aware of government-backed 95% LTV mortgage scheme

The survey also found that just 22% of under-25s were aware of how the scheme could help them.

78% of working age people said they do not have a good grasp of the full support available to help them get on the property ladder, including Help to Buy and shared ownership.

Additionally, just 17% of under 35s understood that first-time buyers may not need to pay stamp duty and 19% did not know that mortgage lenders can consider day-to-day spending habits in mortgage applications.

A further 23% said that they would trust mortgage information from unofficial online forums, such as Quora, Yahoo Answers or Reddit.

NerdWallet’s senior mortgages expert, Richard Eagling, commented: “While government-backed 95% mortgages have been welcomed by many, our research suggests that its benefits may not yet be widely known among potential buyers. Although not right for everyone, the scheme is a significant development for those who would otherwise be unable to put down a larger mortgage deposit - meaning that many who are unaware of it could miss out on getting a foothold on the property ladder.

“Building a decent deposit is one of the biggest challenges home buyers face, and this has only become more difficult as house price growth has rocketed over the last year. Mortgages that are offered at 95% loan-to-values are something of a lifesaver for many borrowers, but if the new mortgage guarantee scheme is going to succeed then more needs to be done to raise awareness of how it works and who could be eligible.”