There are more mortgages available for buyers with a deposit of 5% than in the past five years, new data has been unveiled.
Mortgages for these types of loans, which are usually used by first buyers, have been thin on the ground in recent years.
But research by MoneyFacts has shown more and more mortgages that offer a loan for 95% of the value of a real estate (known as 95% loan to value Deals) slowly entered the market with figures that now reached 388.
It comes in the midst of plans from the government and the financial regulator to separate mortgage rules to help more first buyers get to the real estate ladder.
Rachel Springall, financial expert at MoneyFacts, said it was positive to see a growth in choice for borrowers, but there was room for more deals to push to this area of the market, that only 6% of the mortgage products as a whole.
Moreover, the rates are not as attractive as they were last month. Springall said: “Despite the rising choice, the average rates for a fixed deal of two or five years at 95% loan are higher than at the beginning of 2025.”
She added: “Lenders were encouraged to do more to support first buyers, to stimulate growth in the economy, so the debate about the Losing the credit rules.
“That is why there is an expectation that more products and innovation will arise this year. However, the current rules will continue to be a challenge for lenders to do more, as has been the case in the last 10 years, whereby legal recommendations borrow the loan-to-income ratios of 4.5 or more.
“Until money lenders see relaxation for these rules, some will have no choice but to set restrictions on those borrowing on higher loan-to-value. Regardless of whether these rules change or not, there will be borrowers who want to terminate their purchase before the deadline of the seal rights at the end of March 2025. “