You are here: Home - First Time Buyers - News -

5% deposit mortgages are back

0
Written by:
16/03/2021
Yorkshire Building Society has launched a 95% mortgage for borrowers with just 5% upfront
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.

Mortgage details

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.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Six bank statement mistakes that can ruin a mortgage application

Being overdrawn and having a history of payday loans can be red flags to lenders when they...
Six bank statement mistakes that can ruin a mortgage application

Six in 10 don’t know when to negotiate on price during a property purchase

Love it or loathe it, understanding how to negotiate can be a valuable skill to have in th...
Six in 10 don't know when to negotiate on price during a property purchase

SPF Private Clients to arrange mortgages for Huf Haus properties

Mortgage brokerage SPF Private Clients has announce a partnership with Huf Haus, a German...
SPF Private Clients to arrange mortgages for Huf Haus properties

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators

+