High Street lenders are now starting to offer mortgages to borrowers offering a deposit of just 5% under a new government guarantee scheme.
The policy, announced in the Budget, is designed to help more first-time buyers secure a home.
But the launch comes as average house prices in the UK continue to rise to record levels.
Analysts also suggest that cheaper deals are available for those able to stretch to a 10% deposit.
The scheme is similar to policies previously used to boost the housing market and the economy, as well as offering support to those buying a home for the first time.
The new scheme will be available to anyone buying a home costing up to £600,000, unless they are buy-to-let or second homes.
The government is offering a partial guarantee, generally of 15%, to compensate lenders if the borrower defaults on repayments.