"Game-changer" or "asking for trouble"? Brokers divided on Yorkshire/Accord mortgage product with a £5,000 deposit up to 99% LTV

Accord’s launch of a 99% mortgage for first-time buyers is like a breath of fresh air. With just a £5,000 deposit, it's a game-changer for many dreaming of homeownership but stuck in the savings slow lane. Sure, it's a bold move amidst the cost of living squeeze, and while it won’t solve every problem — affordability still looms large with wages lagging behind inflation — it's a step towards making the property ladder less of a leap. Here's hoping this sparks a trend, encouraging more lenders to craft solutions that really help first-time buyers. It's about time the path to owning a home became a bit smoother.

This is a great bit of much needed innovation. That's if it works and isn’t a ‘token gesture’ offering. Tight criteria can often mean that just a small handful of borrowers will qualify. Affordability still can play a big part of the problem in London and the South East.

Kudos to Yorkshire Building Society. The bunny is out the hat just in time for Easter with this innovative product aimed at those who need it the most. First-time buyers are those who stimulate movement further up the property ladder, so this product should solve the chicken and egg situation that the uk property market currently faces. It's helping those who need it the most to get on the property ladder, and subsequently allowing those already on the ladder to move further up it. There are other options available for first-time buyers and of course there are caveats like make sure you overpay to avoid negative equity, but overall this is a good addition to the first-time buyer toolbox.

It's refreshing to see a lender take the bull by the horns and release an innovative scheme to help first-time buyers. We speak to many potential buyers who in theory could afford a mortgage, but struggle to save the high deposits needed, especially when faced with rental costs that are often more than the monthly mortgage costs would be. Property ownership is fast becoming the preserve of those lucky enough to have additional family funding, whilst those who do not, remain trapped in an ever more competitive private rental sector. Owning your own home remains the dream for many, and offering a mortgage with a deposit of £5,000 will open the doors to more buyers who had been starting to give up hope of owning soon. Whilst this alone will not solve the issues around home ownership, and some borrowers may not qualify given the fact that prudent lending and affordability rules are still rightly front and centre of this scheme, it is nevertheless a start from a forward-thinking lender.

Firstly we should applaud some innovation with a product that helps those struggling to raise their deposit. Is it suitable for the first-time buyer market? It’s certainly an option within the wider low deposit options, we still have some 100% schemes for renters and those with family assistance, so this isn’t going to revolutionise the market on its own, but it will help a number of borrowers who are currently stuck and might pay less than their rental.

This innovative new product may not be the final piece in the property puzzle but it is a large step in completing the border. Technically it is only a 1% deposit for first-time buyers able to buy at 500k and afford a £495k mortgage with tough affordability checks, but in reality it will be more likely used at an around 2.5% deposit mortgage on homes around 200k.

A great headline-grabber and we welcome new products with open arms, especially for first-time buyers who have been neglected by the government. However, the product does have several conditions so it will be interesting to see how many people get over the finish line.

It’s so refreshing to see lenders trying to help first-time buyers. It will be fascinating to see how high the internal credit scoring is and how many cases get over the line. However, I definitely have enquiries from people that I may be able to help with this product.

Well done to Accord for addressing one of the biggest challenges facing first-time buyers by introducing a mortgage that slashes the amount of deposit needed to get into the property ladder. Of course the devil will be in the detail as to who can qualify for this but initially the set of requirements laid out by Accord and Yorkshire does seem restrictive but that’s understandable as they launch this product and hopefully the criteria will loosen in time. With Perenna offering long-term fixes on up to six times income and 100% mortgage deals for renters there does seem to be more choice now for first-time buyers.

This looks like something that will be perfect those who meet the affordability requirements to borrow, but struggle to save a bigger deposit. We'll certainly be considering this product in the right circumstances. These people tend to be higher-earners, who are currently renting and in many cases can find that the mortgage payments won't be much different, and perhaps even a bit less, than the rent they currently pay. However, the fact that it won't be available for flats will certainly impact the take-up.

An innovative product released by Yorkshire Building Society and Accord that will help out some first-time buyers no doubt. Is it really a 1% deposit mortgage? Only if you are buying at £500,000, becuase the minimum deposit is £5000. The proof will be in the pudding when the first few borrowers look to apply for this type of product. How strong will their credit profile need to be and will this be affordable for the type of borrower that will need this product? It will be interesting to see if this product proves popular.

First-time buyers have been given a boost with this innovative product. The Government couldn’t make it work so a lender has gone out and set their stall on a 99% mortgage product. Well done Accord for the innovation but let’s see how many get over the line with strict criteria and conditions. As always the devil is in the detail.

I’m all for product innovation. It’s something that brokers have been calling for throughout this difficult period. A 99% mortgage does make me nervous though. This product will be very niche and suitable for a very select minority of first-time buyers that can afford £500,000 plus properties.