How does the 95% mortgage scheme work?

The 95% mortgage scheme is back this year after being stopped almost completely during the pandemic. With this scheme, you pay 5% of the value of the house in your deposit, and the remaining 95% is what you borrow. For example, if the house you want to go for is the average £260,000, you would pay £13,000 for your deposit, and borrow the remaining £247,000.
This is specifically for residential, not buy-to-let properties, and the value of the home has to be up to £600,000, whether it is a new-build or an existing property. Remember that you also need to factor in other costs on top of your deposit- the solicitor’s fees, surveillance costs and stamp duty fees also need to be considered in your budget when you go to buy a house.