(qlmbusinessnews.com . Thurs 17th Apr, 2025) London, UK —
Record Low-Deposit Mortgage Options: How UK First-Time Buyers Benefit
New figures reveal that the availability of low-deposit mortgage deals in the UK has surged to its highest level since the 2008 financial crisis. Data from financial information service Moneyfacts shows that mortgage products requiring deposits of either 5% or 10% have increased dramatically, providing first-time buyers with a wider range of options—albeit at a time when house prices and interest rates remain elevated.
For those able to offer a 5% deposit, there are now 442 mortgage options available, a significant jump from the 204 deals available just two years ago. Similarly, borrowers with a 10% deposit can now choose from 845 products, up from 684 in April 2023. Despite these improvements, the average mortgage rate for low-deposit deals still exceeds 5%, whereas a 40% deposit typically secures a rate below that threshold.
The boost in product availability comes at a time when saving for a deposit has been challenging due to rising rental costs. Rachel Springall from Moneyfacts remarked, “A rise in product availability for aspiring homeowners is a healthy step in the right direction,” though she noted that only 6% of all available fixed and variable rate mortgages require a 5% deposit—indicating there is still room for further improvement.
Alongside the mortgage market, the UK property market remains competitive. Data from property portal Zoopla suggests that homes in England and Wales are typically on the market for just 36 days before a sale is agreed, with half of all homes selling within two months of being listed. The fastest transactions are seen with two-bedroom properties, averaging just 23 days, while larger homes take longer. Regional differences are apparent too, with northern areas selling more swiftly than in the south.
Amid ongoing uncertainty over interest rates and potential changes to stamp duty in England and Northern Ireland, sellers are advised to set realistic asking prices. Richard Donnell, Executive Director at Zoopla, emphasised that overpricing could adversely affect saleability, urging households to consider local agent advice when listing their properties.
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