Martin Lewis has revealed a top tip for house buyers looking at a 5 per cent deposit mortgage.

Appearing on This Morning, the Money Saving Expert founder revealed how house buyers can boost their chances of getting a mortgage.

However, he also warned them about the government’s new 95 per cent mortgage guarantee scheme.

The scheme, announced during the Chancellor’s Budget and launched earlier this week, has been designed to help first time buyers to get on the property ladder and to give a boost to the housing market.

The incentive allows buyers to borrow 95 per cent of the property’s value, while putting down a 5 per cent deposit.

The government acts as a guarantor if the buyer defaults on their payments.

Scheme ‘helps the lender’ instead of borrowers

But Lewis, who told hosts Phillip Schofield and Rochelle Humes that he has “never been a fan” of 5 per cent deposit mortgages, said some deals may not be as beneficial as they seem.

He urged buyers to do their research first and not to be tempted to opt for a mortgage deal only because it is part of the new scheme.

“Don’t go for a mortgage just because it’s part of the guarantee scheme,” Lewis warned on the ITV morning show.

“There is clever hype… when actually the scheme helps the lender and doesn’t impact borrowers.

“It doesn’t give you anything extra and there are a lot of 5 per cent deposit mortgages out there.”

He explained to the presenters that 5 per cent deposits are not new to the housing market and have been around for years - so not every mortgage deal will be backed by the government.

Crucial mortgage tip

However, for those looking at such a mortgage scheme, Lewis revealed a crucial tip.

He told buyers not to pay exactly 5 per cent on their deposit, as paying a little more could help to get the mortgage through from the lender.

“One quick tip, that they rarely ever mention, I say go to 5 per cent - but actually, I’d always go £100 beyond the limit because that tends to ease acceptance,” he advised.

“Underwriters tend to think that they haven’t just managed to get to the limit and they’ve gone a little bit beyond it.”

The government’s scheme will be applicable on houses of up to £600,000.

It is now available from lenders on high streets across the UK, with Lloyds, Santander, Barclays, HSBC and NatWest all launching mortgages under the scheme this week.