Some lenders now offer mortgages up to 100% of a property’s value
First-time buyers in the UK now have access to the widest selection of low-deposit mortgages in nearly two decades, according to new data.
Financial data provider Moneyfacts reported this week that 537 deals allowing borrowers to take out 95% of a property’s value were available at the start of February. This is almost double the 274 such deals on offer in February 2024 and marks the highest number since March 2008.
Rachel Springall at Moneyfacts said the expansion in mortgage options signals positive prospects for those struggling to afford their first home. “This year is setting itself up to be a fruitful one for first-time buyers, and really, they need all the help they can get amid the lack of affordable housing,” she said.
In recent months, banks and building societies have loosened affordability rules and launched products requiring smaller deposits, addressing one of the primary obstacles facing would-be homeowners. Many prospective buyers find their income consumed by rent and living expenses, making it difficult to accumulate the necessary deposit.
Current two-year and five-year fixed-rate deals for those borrowing 95% of a property’s value start at approximately 4.47% and 4.53%, respectively. Borrowers able to provide a 10% deposit have even greater choice, with a record 981 mortgages available for 90% loan-to-value deals at the beginning of February.
Some lenders have pushed beyond the 95% threshold. Santander launched a mortgage this month allowing first-time buyers to borrow up to 98% of a property’s value through a five-year fixed-rate loan requiring a minimum £10,000 deposit. The Skipton and Yorkshire building societies offer deals permitting borrowers to access up to 100% and 99% of a property’s value, respectively, though restrictions often apply regarding eligibility and property types.
Demand among buyers rises
The broader housing market is also showing signs of recovery. January data from the Royal Institution of Chartered Surveyors reported improvements in new buyer enquiries and house price balance indicators compared with late 2025, suggesting cautious optimism among prospective homeowners. Meanwhile, Halifax data showed that the average UK house price surpassed £300,000 for the first time in January 2026, reaching £300,077, with annual growth around 1%. Although price rises and supportive wage trends have helped some buyers, affordability pressures persist in parts of the market.
Despite the expanded options, research from the Building Societies Association (BSA) published this week suggests many aspiring homeowners remain unaware of the opportunities available. The trade body’s findings showed that 47% of people wanting to purchase a home had never consulted a lender or mortgage broker about their options. Among those who had, 46% had not done so within the past year.
When presented with information about building society deals requiring minimal or no deposits, two-thirds of respondents said they could buy property sooner than previously thought. The BSA characterised this as “a clear gap between perception and reality.”
The organisation claims many first-time buyers “could be closer to owning their own home than they think” but are ruling themselves out without exploring what mortgages might be accessible to them.
