< 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

Earth Day 2021: How to make your home more environmentally friendly

Join in with millions of people around the world and make your home more climate clean this Earth Day   This year celebrates the 51st anniversary of Earth Day. Originally conceived in 1970 by peace activist John McConnell as a day of education about how to look after our Earth, in 1990, Earth Day went …

Read more...

Cheers… and chairs! Garden furniture to enhance your outdoor space

Whether you’re looking for something practical or a splash of style, there’s lots of choice out there   The days are getting warmer, the nights are getting shorter and the lure of a cold beer in the garden on a balmy summer evening grows ever stronger. Unless you have a severe case of patio embarrassment …

Read more...

5% mortgage scheme launched

The government guaranteed, 5% mortgage deposit scheme has launched this week   High Street lenders are now offering mortgages with just a 5% deposit under a new government guaranteed scheme that launched yesterday. The policy, which was announced in the Budget, is designed to help more first-time buyers secure a home. The scheme is similar …

Read more...

Wallpaper know-how

Our top tips when it comes to wallpapering   Wallpapering. A word that strikes fear into a lot of DIYers, however, with our handy guide you too can become a wallpapering pro.   The Basics First things first, always go for a high-quality wallpaper. If you’re thinking of wallpapering a room, then you are thinking …

Read more...

Public urged to use walk-in centre as shoppers come out in force

Symptom-free test site set to open in Swaffham   The next step on the Government’s roadmap out of Coronavirus restrictions was greeted by sunny weather and a rush of shoppers into town centres across Norfolk. This week’s milestone in the easing of lockdown meant shops selling non-essential items, pubs, gyms and hairdressers could welcome customers …

Read more...