• Brian

5% Deposit update!


A month later and there are now around 10 lenders offering 5% deposit mortgages.


You do not need to be a first-time buyer with all of these lenders but the affordability will be tight, with a maximum of 4.5 x income allowed.


Accord came out the gate with a 5 year fix but there are now 2 year fixes available, fee free, from 3.99%. As we head to the midway point of 2021 we can expect more lenders to follow suit and hopefully increase competitiveness.


Lenders will still be more cautious approving a high loan to value (95%) mortgage compared to larger deposit applications which means how the case is packaged is key. You need to make sure it is done right, first time.


Speak to your broker - they are in high demand to help obtain these low deposit deals (see FT Article)


Your home may be repossessed if you do not keep up with repayments on your mortgage