Mon, 14 Apr 2025

Mon, 14 Apr 2025 Biggest choice of low-deposit mortgages for 17 years

First-time buyers will welcome the greater choice although prices are still on the rise.
There are now more low-deposit mortgages available in the UK than at any time since the financial crisis of 2008, according to new data from Moneyfacts. The number of deals that require a deposit of 5% or 10% has increased significantly, offering a boost for first-time buyers.
* For those able to offer a 5% deposit, there are now 442 mortgage options available.
* Two years ago, the choice was much lower, with only 204 such mortgages on offer.
* Borrowers who can pay a 10% deposit have an even wider range of choices, with 845 products available. However, it's worth noting that these mortgages often come with higher average interest rates, typically above 5%. In contrast, borrowers who can afford to put down a 40% deposit tend to get better rates, averaging under 5%. Despite the increased choice for first-time buyers, the UK housing market remains competitive. Homes are selling quickly, with an average of just over a month between listing and sale agreement. The data also highlights the importance of getting the asking price right when putting a home on the market. With houses selling relatively fast, sellers need to be realistic about their pricing and seek local agent advice. Overall, while there is more choice for first-time buyers, they still face challenges in navigating the housing market, including uncertainty over interest rates and changes to stamp duty.
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