For many young adults, getting on the property ladder can feel like a distant dream. High house prices and the challenge of saving for a deposit often make homeownership seem out of reach. However, Accord Mortgages has introduced a new option that could help first-time buyers take their first step towards owning a home—the £5,000 deposit mortgage.
What Is the £5K Deposit Mortgage?
Accord Mortgages, part of the Yorkshire Building Society, has launched a mortgage specifically aimed at first-time buyers who may struggle to save for a traditional deposit. This mortgage allows buyers to secure a home with as little as £5,000 upfront, reducing the financial burden of getting onto the property ladder.
Key Features of the Mortgage
- Low Deposit Requirement: Unlike typical mortgages that require a minimum of 5% of the property’s value/purchase price as a deposit, this product allows first-time buyers to put down just £5,000.
- Affordability Checks: Buyers will still need to meet affordability criteria to ensure they can manage their mortgage repayments.
- Available Through Brokers: The mortgage is also accessible through intermediaries, meaning buyers will need to work with a mortgage broker if they want to apply via Accord Mortgages.
- Fixed-Rate Option: The product comes with fixed-rate terms, offering stability in monthly repayments.
- Maximum loan to value: 99% of purchase price or valuation whichever is the lower.
- Property types: Available for Houses and Flats (no new built properties)
- Purchase Price: Minimum purchase price £100,001 and Maximum purchase price £500,000
- Loan Amount: Minimum loan £95,001 and Maximum loan £495,000
Who Is Eligible?
This mortgage is designed for first-time buyers who have saved at least £5,000 but may struggle to reach a traditional deposit threshold. Buyers must still meet income and affordability requirements, and the loan amount will depend on individual circumstances and the property value.
Is This the Right Option for You?
While the £5K deposit mortgage opens doors for many aspiring homeowners, it’s important to consider whether it’s the best choice for your financial situation. Some key factors to think about include:
- Interest Rates: Low-deposit mortgages often come with higher interest rates than those with larger deposits.
- Long-Term Costs: A smaller deposit means borrowing a larger percentage of the property’s value, potentially leading to higher monthly payments.
- Alternative Options: Shared Equity or Shared Ownership may also be worth exploring.
How to Apply
Since this mortgage is available through brokers if you want to apply via Accord Mortgages, speaking with an experienced mortgage adviser is the best way to determine if it suits your needs. A broker can help assess your eligibility, compare options, and guide you through the application process.
Final Thoughts
Accord Mortgages £5,000 deposit mortgage offers a valuable opportunity for first-time buyers struggling to save for a large deposit. While it won’t be the right fit for everyone, it provides an accessible route to homeownership for those ready to take the leap.
If you’re considering this mortgage, speaking to a professional mortgage broker will help you make an informed decision based on your personal financial situation.
Looking for expert mortgage advice? Get in touch with our team today to explore your options and take your first step toward homeownership.
Tel – 01224 679330 | Email – hello@portfs.co.uk | Online – https://bit.ly/Mortgage-Review
Your home may be repossessed if you do not keep up repayments on your mortgage
