The mutual is also reducing the rate to 5.69% from 5.74%.
How does the £5k deposit mortgage work?
The mortgage allows borrowers to buy a property worth up to £500,000 with a deposit of just £5,000. The product is only available to first-time buyers on a capital and interest basis.
It now comes as a five-year fixed rate at 5.69% and the maximum age of the borrower at the end of the term is 70.
The mortgage can now be taken out to purchase non-new-build residential flats as well as houses.
Why the change?
The Society said it’s making these changes in direct response to feedback to enhance its eligibility criteria to help more aspiring homeowners.
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Ben Merritt, director of mortgages, said: “We’re absolutely delighted with the impact this product has had – our teams have been overwhelmed by the very human stories illustrating the difference it has made to people’s life plans. In fact, it has reminded us of why we exist, and the fact a house is so much more than just bricks and mortar.
“Expanding its reach to include flat purchases is the natural next step and we’re really pleased to be able to respond to feedback by offering this additional opportunity for would-be first-time buyers to benefit.
“Our analysis suggests this change will particularly benefit people in city centre locations in areas like London, the South-East and parts of Scotland, where property prices tend to be higher and flats are therefore a popular choice.”
Aspiring first-time buyers can access the product either direct from the Society or through its intermediary lending arm, Accord Mortgages, by speaking to a mortgage broker.
