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"Mortgages have never been friendlier" as low deposit mortgages hit 17-year high

ended 15. April 2025

New data published by Moneyfacts has revealed the number of mortgage deals at 90% and 95% loan-to-value is at its highest level since March 2008, a 17-year high. It found the availability of deals at the 95% loan-to-value tier rose to 442, compared to 575 in March 2008. The availability of deals at the 90% loan-to-value tier rose to 845, also at its highest point in 17 years (957 – March 2008). One broker said “Despite all the talk of turbulent interest rates, mortgages have never been friendlier.” Views below.

8 responses from the Newspage community

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Ben Perks
Managing Director at Orchard Financial Advisers
Despite all the talk of turbulent interest rates, mortgages have never been friendlier. There are products available now for people with low deposits, poor credit and those nearing retirement. The bottom line is, lenders are really keen to lend and they’re looking at more ways to do so. If they continue to innovate, the future is bright for borrowers.
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Peter Dockar
Chief Commercial Officer at Gen H (Generation Home)
Low deposit schemes are very helpful for a specific type of buyer, such as those with high salaries and low savings. But there is a much larger problem, and a much larger group of aspiring buyers, who are not helped by these schemes. This is because low deposit schemes don't account for the massive affordability challenges faced by buyers today. The average house price in the UK is 8x the average salary; this rises to 13x in London. There is no way that most buyers with small deposits would pass affordabilty to purchase one of these homes, especially given lenders' LTI flow limits. New mortgage products and schemes must focus on addressing both of these barriers – deposit and affordability – in tandem, otherwise thousands will remain locked out. All this is to say, mortgages may be friendlier, but they're certainly not yet friendly enough.
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
There's a raft of solutions that we can tap into for first-time buyers. This includes higher income multiple products that increase borrowing capacity from the likes of Nationwide, Halifax and Leeds, and also low deposit options from the likes of Skipton and Accord. When you add in that fixed rates are looking a bit more attractive and property sales are often being agreed at, or below, the listed sale price, we feel it's a great time for first-time buyers.
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Babek Ismayil
CEO at homebuying platform OneDome
There certainly a lot more innovation at the higher loan-to-value end of the mortgage spectrum. Not only are there more mortgage products, but lenders are finding new ways to help people get that important first step on the ladder. Affordability is an ongoing challenge for first-time buyers but many will be surprised by the products that help them work around this. If you have a small deposit, speak to a good broker and you may well be surprised by your options.
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Justin Moy
Managing Director at EHF Mortgages
It has certainly become a little easier to find a mortgage option for most new borrowers, with the development of opportunities like the 'Helping Hands' scheme from Nationwide, which allows first-time buyers to borrow around 20% more than normal. This brings more people onto the proeprty ladder, and more property options into scope, as many FTB's look to bypass leasehold flats and buy well-sized houses, avoiding the immediate need to move in just a few years' time. Sensible pricing, stretching the term to make it more affordable, and that 5-year stability, is a good combination for new borrowers at the moment.
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Harry Goodliffe
Director at HTG Mortgages
Lenders are finally doing what the government isn't — stepping up for first-time buyers. We’re seeing more low-deposit deals, flexible criteria and tailored products that actually make homeownership feel possible again. It’s not just about rate cuts, it’s about access. And right now, lenders are opening more doors than they’re closing.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Government schemes such as Help to Buy might not be as prominent as they once were, but first-time buyers still have lots of choices in the market. More products now cater to those with small deposits, helping them to get onto the property ladder. Lenders are also pushing the boat with 90% to 95% LTV products to try and snap up these borrowers. Amid all the talk of trade wars and recession, borrowers still have good options and may actually benefit if the base rate is cut in the coming months.
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Elliott Culley
Director at Switch Mortgage Finance
With mortgage rates much higher over the past two years, demand for mortgages from first-time buyers has dipped. As a result, mortgage lenders have had to become more flexible. For some, this has meant relaxing certain lending criteria, whilst for others it has meant moving into lower deposit mortgages. Mortgages have now become far more accessible, albeit more expensive.