< Back to blog

Low-deposit mortgages return Posted On 21 January 2021

 

A four-fold rise in mortgage products for homeowners with a 10% deposit

 

Since last summer there has been a four-fold increase in low-deposit mortgage products available. The low-deposit mortgage products, which offer deposits as low as 10%, will offer some relief to first-time buyers.

 

Last September there were only 44 mortgage products available with a 10% deposit, however, that choice has now risen to 197 products with some big lenders adding their own products in recent weeks. For those with a 15% deposit, there has also been a sharp rise with a huge choice available.

 

During the pandemic, lenders have been grappling with the effects of COVID-19 on their business. Staff shortages, and employees working from home, alongside the mini-property boom towards the end of the year, have meant that many were unable to process applications as fast as before.

 

This led to some of the biggest mortgage lenders withdrawing from the market, until now. With new systems in place, and the ability to work more efficiently from home, some have returned to the lending market with the effect being that the added competition has helped push costs down.

 

Another ray of hope for mortgage lenders, which then passes down to homeowners, is that at the end of December only 130,000 mortgage payment holidays were still in place compared to 1.8 million during the peak of lockdown in June. With mortgages being paid again, mortgage lenders have started looking at new products and re-entered the market to make it more competitive.

 

And with the Stamp Duty Holiday due to be debated in the House of Commons this week, now is the perfect time to talk to us to see what our financial advisors can do for you…

< Back to blog

Connect with us

Recent Posts

Celebrating International Women’s Day

            Today is International Women’s day, and what better way to celebrate than to look closer at some of the most influential women this year   Every year, on the 8th of March, we celebrate International Women’s Day. It is a day to celebrate the achievements of women, not just …

Read more...

The green shoots of personal growth

Put some bounce into spring with a new hobby   So here we are, spring already: the season of new birth, new growth … and new ideas. It’s an exciting time of the year, even more so if you’ve decided to broaden your horizons and embark on a new hobby. As the weather, hopefully, grows …

Read more...

Rave on! Putting a new spin on virtual experiences

Five things to look out for this month to put a spark into your weekends   Pssst! Wanna go to a rave? Don’t worry, this one’s totally legit and even though, like any good party, you’re going to have go looking for it, you won’t be breaking any lockdown restrictions. Because it’s in your own …

Read more...

The Budget: Stamp Duty Holiday extended and more…

The Chancellor has set out the 2021 budget and here we look at what it means for the property market.   Earlier today, Rishi Sunak set out one of the most significant budgets in recent times. It has been highly anticipated by the wider public and the property market alike. Here we are going to …

Read more...

Keep on keeping on Britain

We’re inching ever closer to the end of lockdown   Just like the last fifty-yards in a marathon or when the open goal is staring into your face, looming larger than ever, now is the time to take a deep breath, regain your composure and push through the hardest test. Now is not the time …

Read more...