For many first time buyers, saving a deposit is the biggest challenge on the path to homeownership. Recent changes from lenders indicate that they are looking at ways to support buyers who are otherwise mortgage-ready, but held back by deposit size.
The new product means eligible buyers could potentially purchase with a deposit from £10,000. It’s a possible game-changer for those who needed to wait several more years to reach traditional deposit levels.
Importantly, gifted deposits from family or friends are also accepted, which is often a key part of the picture for first purchases. What’s more, as a repayment mortgage, rather than interest-only, it means buyers could steadily build equity from day one.
The mortgage is available exclusively to First Time Buyers, including those buying jointly, and comes as a five-year fixed rate (ERC’s apply). The maximum loan threshold is £500,000, with the longest repayment terms 40 years, potentially helping to keep payments more manageable for many households.
As with any high loan-to-value mortgage, there are criteria to be aware of. The product is available on houses only, rather than flats or new-build homes, and is not offered on properties in Northern Ireland.
For first time buyers, products like this highlight the importance of taking advice early. Understanding what you can borrow, how much you’ll need upfront, and which lenders are most suited to your circumstances can make the difference between waiting and moving forward with confidence.
With the right guidance, getting onto the property ladder may be closer than you think. If you’re considering your first purchase and wondering whether new mortgage options could work for you, speaking to an independent mortgage adviser is a sensible first step. We’ll be happy to refer you to one of our trusted partners.
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