Great news for aspiring homeowners, the number of low-deposit mortgage products has reached its highest level since 2008, opening up more opportunities for buyers with smaller savings to step onto the property ladder.
According to Moneyfacts, there are now 1,287 mortgage products available at 90% and 95% loan-to-value (LTV). In April alone, over 400 deals at 95% LTV and more than 800 deals at 90% LTV were on offer, this is a clear sign of growing confidence among lenders and an encouraging shift in support for those who may struggle to put down a large deposit.
Even for buyers with larger deposits, options are improving, with the number of higher LTV mortgages increasing from 778 in March to 797 in April.
While 95% LTV deals still represent just 6% of the total market across fixed and variable mortgages, Moneyfacts’ finance expert Rachel Springall described the trend as “a healthy step in the right direction.” It shows that lenders are beginning to respond to growing demand and the realities of the current housing market, where saving a 10% or higher deposit remains a major hurdle for many.
Why Does This Matter for First-Time Buyers?
The expansion of low-deposit options is especially significant for first-time buyers , who are often balancing rising rents, the cost of living and the challenge of saving for a home. Increased access to 90–95% LTV mortgages can help more people buy sooner, with less need for family support or long savings timelines.
But with more choice comes more complexity and making the right decision depends on a number of personal and financial factors.
Ready To Explore Your Mortgage Options?
Whether you're a first-time buyer or looking to move with a small deposit, our expert advisers can help you find the most suitable deal for your needs. We’ll guide you through the process, explain your options clearly and help you secure your next step with confidence!
Source:https://www.yourmoney.com/mortgages/options-for-low-deposit-mortgages-hit-17-year-high/
Your home may be repossessed if you do not keep up repayments on your mortgage. Higher LTV mortgages may come with higher interest rates and tighter affordability checks.
