5% deposit mortgages are back
Accord Mortgages – the arm of Yorkshire Building Society that operates through mortgage brokers – is the first lender to return to the 95% loan-to-value (LTV) mortgage market on Wednesday 17 March.
Accord said it will launch the mortgage as part of its continued support to help people get on the property ladder.
The new 5% deposit mortgages will only be available through mortgage brokers, not direct to the public.
The new 95% LTV mortgage has a five-year fixed rate of 3.99% and comes with a £995 fee and free standard valuation.
Jeremy Duncombe, managing director of Accord Mortgages, said: “Part of our purpose as one of the UK’s largest building societies is to help people own their own home, and the unique challenges of the last year have made that harder than ever for some.
“Increasing house prices, the need to save for a larger deposit and limited choice in the higher LTV markets, means the goal posts have continually moved for many.
“We were one of just a handful of lenders that continued to offer 90% LTV mortgages during the pandemic and have been monitoring the market closely to ensure we carefully broaden our support to those with even smaller deposits.
“This new 95% mortgage will give brokers another option to help clients with smaller deposits realise their home ownership ambitions.”
Are there any restrictions?
The mortgages are available up to 4.49% times income, with a maximum loan size of £500,000, plus lending on flats and new build houses is not permitted.