Choice of low deposit mortgages reaches two-year high
Financial information website Moneyfacts counted 361 deals available for borrowers with a 5% deposit in early July.
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Your support makes all the difference.The choice of 5% deposit mortgage deals reached its best level for more than two years at the start of July, according to analysis.
Financial information website Moneyfacts counted 361 such deals available, marking the highest total since 369 products for people with 5% deposits were available in May 2022.
People looking for low deposit deals are often first-time buyers.
Moneyfacts looked at data for the first available day of each month for the research.
Across all deposit sizes, Moneyfacts counted 6,658 mortgage options in early July, which was the highest number for the start of any month since February 2008, when there were 6,760 deals.
Borrowers who have a limited deposit may be pleased to see a rise in the number of mortgages available at 95% loan-to-value this month, reaching a two-year high
The average shelf-life of a mortgage product also increased in July, to 30 days, up from 15 days at the start of June.
The Bank of England base rate is expected to be cut at some point in the months ahead, leading to the rates on some mortgages being lowered.
However, many people re-mortgaging will still be doing so on higher rates than they have been paying previously.
Rachel Springall, a finance expert at Moneyfacts, said: “Borrowers who have a limited deposit may be pleased to see a rise in the number of mortgages available at 95% loan-to-value this month, reaching a two-year high.
“There are now 361 options available, the highest count since May 2022, when there were 369 deals.
“There is lots of room for growth in this area of the market, as it currently represents just 5% of all deals available to borrowers across fixed and variable mortgages. Overall product availability continued to rise, spreading a positive sentiment on mortgage choice.”
The findings were released as Chancellor Rachel Reeves said the Government would review green belt boundaries to prioritise brownfield and so-called grey belt land to meet housebuilding targets.
Ms Reeves said: “We must acknowledge that trade-offs always exist. Any development may have environmental consequences, place pressure on services and rouse voices of local opposition, but we will not succumb to a status quo which responds to the existence of trade-offs by always saying no.”