Post Office signs up to Help to Buy scheme There are no upfront booking fees and borrowers will receive a free valuation and £250 cash-back on completion. Help to Buy 2 is available to existing homeowners and first time buyers. Borrowers need a 5pc deposit and the lender will buy a guarantee from the Government covering up to 15pc of the value of the proper. This makes it less risky for lenders and should let them offer lower rates. The lenders currently offering the mortgage guarantee scheme include Lloyds Bank, NatWest, Halifax, Bank of Scotland, HSBC, Virgin Money and Aldermore. Since the launch of the second phase of Help to Buy in October, a number of lenders have returned to the 95pc mortgage market, including Clydesdale and Yorkshire Banks and Yorkshire Building Society. Their mortgage deals are not part of the Help to Buy scheme but many are more competitively priced. The cheapest rate currently available for 95pc mortgages is Yorkshire Building Society's two-year fix for 4.69pc, which has an £845 fee. David Cameron, the Prime Minister, said last week that more than 6,000 buyers have applied for a mortgage through the second phase of Help to Buy. Mr Cameron said nearly £1bn of home loans have been offered to borrowers in the first three months since its introduction, and 750 purchases have completed. There is no doubt Help to Buy has played a part in stimulating the mortgage market by helping buyers with a small deposit on to the housing ladder. But critics fear the scheme could increase demand, and therefore prices, to such a level that all but the wealthiest buyers are priced out of the market. Last month, Vince Cable, the Business Secretary, called for the Government to "look again" at Help to Buy amid a "raging" housing boom in London. He said interest rates should be raised to avoid a situation where house prices are "out of control" and the capital becomes unaffordable for anyone except "foreigners and bankers." Downing Street has insisted that Help to Buy encourages "responsible lending." Tables: Mortgage best buys