First-home buyers in parts of Britain are being offered deposits of as much as 70,000 pounds ($113,000) by their local council to help them get on the property ladder, with taxpayers footing the bill if house prices fall.

The controversial new mortgage deal is being launched by five local authorities and backed by Lloyds Banking Group, one of the lenders bailed out by UK taxpayers during the credit crisis.

The scheme is aimed at struggling first-home buyers who are unable to afford the large deposits required by lenders concerned about borrowers defaulting on their loans.

It has echoes of the housing boom in the run up to the credit crisis when banks not only approved mortgages to those without a deposit, but even lent more than the value of the property.

Experts warned lenders' efforts to offer innovative new deals to help first-time buyers could backfire if house prices fall.