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 5K Deposit  Mortgages Available to First-Time Buyers 

There was welcome news for first-time buyers today, as Yorkshire Building Society announced the launch of its 5k Deposit Mortgage, which will allow borrowers to secure their first home faster. 

The product can be used for loan to values (LTV) over 95%, up to a maximum of 99% to purchase properties up to the value of £500,000. 

It was created after detailed research by Yorkshire Building Society revealed that £5,000 was the crucial amount that would allow buyers to tap into the housing market. Perhaps more importantly, the society’s assessment determined that first-time buyers could benefit from this deal regardless of where they are looking to buy. 

“Our analysis showed a deposit of £5,000 – compared to a typical 5% – would make a huge difference to first-time buyers across the country by reducing the time it takes them to save up and achieve homeownership, from a maximum of 7.5 years (in London) to around 2.5 years,” explains Yorkshire Building Society Director of Mortgages, Ben Merritt.

How Does the 5K Deposit Work? 

Applying for the 5K deposit is the same as applying for any other mortgage product and is available directly to customers and via brokers through Accord Mortgages – the intermediary-only arm of Yorkshire Building Society. 

So long as they meet the product’s eligibility requirements, borrowers interested in securing a 5K deposit mortgage can submit an agreement in principle (AIP) and the Accord Mortgage Sales & Origination (MSO) will take care of the rest of the process. 

Eligibility and Product Features

• At least one applicant must be a first-time buyer (defined as never having owned a property in the past) and no background properties on the application
• Applicants with a minimum £5K deposit
• Applications that achieve the higher credit score required for lending above 95% LTV
• 5 Year Fixed Rate product 
• Maximum age of 70 at the end of the mortgage term
• Available for LTVs between 95.01% LTV and 99% LTV
• Available for house purchases above £100K up to £500K
• Minimum loan above £95K
• Maximum loan £495K
• Maximum LTI 4.49
• Only available for Capital & Interest
• Available for new house purchase business only
• Subject to affordability, criteria and credit score

The Accord’s 5K Deposit excludes the purchase of flats, new builds and properties in Northern Ireland. It is not available for applications where any applicant does not have the permanent right to reside in the UK. It is also unavailable in conjunction with Joint Borrower Sole Proprietor, Cascade Score or Boost LTI services.

The Yorkshire Building Society 5K Deposit Mortgage is available to clients as of 9 AM on 27th March 2024. 

 Talk to a Mortgage Expert Today

If you are a first-buyer hoping to secure a 5K Deposit Mortgage, or you have any other mortgage query, our team of experts are on-hand to provide the best advice and help you secure the best deal based on your circumstances. 

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Related Pages 

Book a mortgage appointment | Mortgage and Protection Guides | Five Tips for First-Time Buyers

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.