If you’re a first-time buyer trying to get your foot on the property ladder, here’s a piece of news you’ll want to pay attention to — the number of low-deposit mortgage deals in the UK has shot up to the highest level since 2008. Yes, really!
In a move that many would call long overdue, lenders are opening their doors wider to those who can only stretch to a 5% or 10% deposit. While the market still has its challenges, this shift signals a fresh opportunity for buyers who’ve been squeezed by high rents, rising house prices, and limited options.
Let’s dig into what’s changed, what it means for you, and how you can make the most of it.
What’s sparked the surge in low-deposit mortgages?
Mortgage deals requiring small deposits have historically been few and far between, particularly since the 2008 financial crash, when lenders tightened up their criteria across the board. But fast-forward to 2025, and we’re seeing a real shift.
There are now 442 mortgage products on the market for buyers with just a 5% deposit — that’s more than double what was available just two years ago. For those with a 10% deposit, the choice rises to a whopping 845 deals.
This isn’t just a fluke. It’s a sign that lenders are feeling more confident in the housing market and more willing to support first-time buyers who don’t have access to the Bank of Mum and Dad or years of savings behind them.
Are mortgage rates still high?
Yes — and no.
While the number of low-deposit options is up, the cost of borrowing hasn’t come down dramatically just yet. Most of these 5% and 10% deposit mortgages come with interest rates above 5%, which means your monthly repayments will still be on the chunky side.
In comparison, those lucky enough to have a 40% deposit are generally securing rates under 5%. That difference may not sound huge, but over the lifetime of a mortgage, it really adds up.
That said, increased competition among lenders could push rates down even further in the coming months — especially if the Bank of England follows through with anticipated base rate cuts. So while rates aren’t at their cheapest right now, things could be heading in the right direction.
Why is this a big deal for first-time buyers?
Let’s face it — saving for a house deposit is one of the toughest financial challenges young people in the UK face today.
High rents, inflation, and wage stagnation have made it harder than ever to put money aside. So the fact that more lenders are offering routes onto the property ladder with just a 5% or 10% deposit is, frankly, a bit of a game-changer.
It opens the door to thousands of people who would otherwise be stuck in the rent cycle indefinitely. It’s not a magic fix, but it’s a much-needed shift in the right direction.
What’s the market like right now?
Here’s the twist — while mortgage product choice is up, the property market is still incredibly competitive.
Homes are flying off the shelves, with the average property in England and Wales selling in just 36 days. Some homes — especially two-beds — are going under offer in as little as 23 days. That’s barely enough time to get your viewing socks on.
And the fastest-moving areas? It’s not just the North dominating anymore. Both Manchester and the London borough of Waltham Forest are tied as the quickest-selling locations, with homes going under offer in an average of just 19 days.
So while mortgage options are looking better, buyers still need to be sharp. Getting a mortgage agreement in principle lined up, being ready to view properties quickly, and staying in close contact with your broker can make all the difference.
Where are the best chances to buy?
Generally speaking, homes in northern England are still selling faster than those in the South, largely thanks to better affordability. But wherever you’re looking, the key thing is being realistic about price.
There are more homes on the market now than there were a year ago, which is giving buyers a bit more breathing room. But sellers who set their prices too high are still struggling to move their homes — so if you’re selling, listen to your estate agent and the market around you.
So, is now a good time to buy?
The answer is a cautious yes.
If you’ve got your deposit together and your finances in order, the sheer increase in mortgage availability makes this a much more buyer-friendly market than we’ve seen in years — especially for first-timers. But don’t mistake “more choice” for “easy”. Rates are still high, and you’ll need to be quick and prepared.
And that’s where a good broker (hello, that’s us!) can really help. At Quick Mortgages, we’re completely fee-free, which means you get expert advice and access to the best deals without paying a penny in broker fees. We’ll help you cut through the noise, find the right mortgage for your situation, and support you every step of the way.
More low-deposit mortgage options is a sign that the UK property market is, finally, opening up a bit more to those with smaller savings pots. It’s not perfect, but it’s progress.
If you’re a first-time buyer and unsure where to start, or you’ve been turned off in the past by limited options, now’s the time to take another look. There are doors opening — and we’d love to help you walk through one of them.
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Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
