Struggling first-time home buyers could be offered 95 per cent mortgages if proposals by some of Britain's biggest house-builders and mortgage lenders come into force.

It has been claimed that some big lenders including Lloyds and Santander attended a meeting in an attempt to ease the supply of finance.

One proposal thought to have been made would involve house builders creating a special fund in which sums of equity would be injected into. This would then be ring-fenced for each house builder and would be used by banks to underwrite mortgages for up to 95 per cent of a property's value.

It is thought that any more however could lead to a fresh backlash against the banks, as such high mortgages are thought to have contributed to the credit crunch and the ongoing situation that we are in now.