5% and 10% mortgages have risen to their highest level since 2008
According to Moneyfacts, there are currently 442 5% mortgages for buyers to choose from; two years ago, there were just 204. For 10% deposits, there are 845 products to choose from, up from 684 in April 2023. The news comes after the government urged lenders to do more to boost UK growth; the rise in product availability should encourage aspiring homeowners to spend and borrow, which is ultimately good news for the economy.
Welcome news for prospective first-time buyers as it has been hard for many to save for a deposit due to the rising cost of renting in recent years. A 5% or 10% deposit with slightly higher monthly payments should help those who have a good salary behind them but have struggled to get the lump sum together. There’s also the option to take the mortgage out for more years to lower the monthly payments.
Higher volume of mortgage options for all buyers in April
Moneyfacts also noted that there are more options available for home-buyers across the board in April compared to last month. There are 6,870 mortgages available, up from 6,684 in March, 6,307 in April 2024 and just 5,146 in April 2023. Flexibility in mortgage options could offset any current economic uncertainty concerns, such as US tariffs or war, too. Those who have been apprehensive to list their property and make moves should now have peace of mind that there is power to choose from an array of products to meet their personal needs going forward.
Shawn Wood, Head of Conveyancing at Watermans shared –
“This is great news for First-Time Buyers who will have more opportunities to purchase their first home. It’s been a challenging period for first-time buyers with high interest rates, soaring costs and rent increases, making it difficult to save a house purchase deposit. Quite often, the mortgage payments would be lower than the rent being paid by future first-time buyers, so low-deposit deals create the perfect opening for people to get their foot on the property ladder. FTBs are fundamental to the property market and it’s good to see them being supported and encouraged to enter the market.
“My top tip to FTBs would be to act quickly, as the lower deposit schemes and government schemes open to first-time buyers will ultimately increase competition in this market and push up purchase prices. Also, they should get themselves set up with a solicitor and mortgage broker ASAP to get an idea of costs and the process before they start viewing any properties. We have an expert purchase team and legal team at Watermans who would be delighted to assist.”
How to buy a home in Scotland
First-time buyers, this is good news for you! But we understand it can be scary and intimidating to get started. So, here’s how to buy a house in easy steps –
- Set your budget (consider monthly bills, subscriptions and non-negotiables)
- Get a mortgage in principle agreed
- Talk to your conveyancing solicitor (that’s us), we’ll guide you through it all
- Find the home you like
- Request its home report
- Make an offer!
- Offer accepted!
- We let you know it’s legally binding (and celebrate with you)
- Get the keys and get packing.