First-time home buyers are to be given a £5m boost from a Lincolnshire council.
South Kesteven District Council is to use the money to help purchasers with their deposits so they can get on to the property ladder.
It said the initiative was unlikely to cost the taxpayer, would be a stimulus for the housing market and would ease pressure on the council's housing list.
The Local Authority Mortgage Scheme will begin in 2012, the council said.
It will work by reducing the deposit needed by a lender from 20% to just 5% and the council will guarantee the difference.
Money will only be taken from the council if the purchaser defaults on repayments.
The council said it was the first scheme of its kind in Lincolnshire and that the money would come from its budget.
The scheme, which will be available to those buying houses costing less than £125,000, does not promote reckless lending or provide unaffordable mortgages, the council said.
Council leader Linda Neil said: "We know that lots of local people can afford monthly mortgage payments but cannot move into the market because they haven't got the deposit.
"National statistics show that when a first-time purchaser buys an existing property this can prompt another five movements in a chain.
"This scheme will be a real stimulus to the whole of the housing market."