The £5k Deposit Mortgage for First Time Buyers

One of the biggest hurdles in purchasing a first home is generally saving for a large enough deposit. But there is potentially some great news with Accord Mortgages introducing what could be the answer.

Accord has launched an exclusive first-time buyer-only mortgage requiring a minimum deposit of £5000.

The mortgage criteria include a maximum loan to value of 99%, with a minimum loan of £95,001 and a maximum loan of £495,000. The mortgage can be taken out for a maximum term of 40 years and must not go past a mortgagee’s 70th birthday.

Mortgages must be on a capital repayment basis and the product is available for houses only and will not include flats or new build properties.

To qualify at least one mortgagee must be a first-time buyer i.e. never having owned a property in the past and all applicants must have an indefinite right to reside in the UK.

To make qualification more accessible gifted deposits will be accepted provided they are from an immediate family member.

New Deposit Scheme

The new £5000 deposit scheme will allow first-time buyers to borrow up to 99% of a property value. The scheme is available across England, Scotland, and Wales to purchase a property with just a 1% deposit, £5000 being the minimum, meaning a property of up to £500,000 can be bought using the scheme. The scheme is designed to help first-time buyers step onto the property ladder with a more affordable and easily saved deposit amount.

Accord research showed that around two in five first-time buyers receive financial help from friends and family to get onto the housing ladder. With gifted deposits from the immediate family being acceptable, will make homebuying hopefully a little easier.

Buying with a small deposit means that the loan-to-value ratio on the property is high and very little equity is in the property initially. Overpayments on this type of product would be highly recommended to increase equity and hopefully avoid any negative equity situations in the future.

The question often raised with high loan-to-value products; is how good my credit profile needs to be. Higher loan-to-value products carry greater risk for lenders and therefore generally require credit profiles to be in good order, the Accord product will need an enhanced credit score to be achieved compared to their standard products.

If you want to know more about the 5K deposit mortgage or other first-time buyer schemes available to assist with getting onto the housing ladder, such as guarantor mortgages, joint borrower sole proprietor, or shared ownership, let us know.

MMPE has helped many first-time buyers take their first step. Talk with us and let’s see if we can assist you with buying your first home.

Schedule an Appointment

My Mortgage Experts & Protection Experts Ltd (FCA 937076), is an Appointed Representative of King Mortgages Ltd.

King Mortgages is authorised & regulated by the Financial Conduct Authority (FCA). King Mortgages Ltd is entered on the financial services register under reference number 803561.

The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.


    Leave a Review

    For more details on how we handle your data, please view our Privacy Policy

    Error: Contact form not found.

      Contact Me

      Fields marked with an * are required.

      For more details on how we handle your data, please view our Privacy Policy

      Automatic Property Value Updates

      Changes in property value, coupled with a potential reduction in your loan amount (with a repayment mortgage), mean a change in the equity available in your property (Loan to Value); hence there could be improved opportunities for a better mortgage for you.

      Product Expiry Date

      Sussed will track when your mortgage is due to expire (usually when your mortgage payments rise substantially as you will automatically transfer to your lender’s standard rate).

      The app will alert you when it’s the right time to discuss your options with your mortgage broker.

      Sussed can help you plan.

      Rate Riser

      This feature is ideal for today’s economy and increasing prices. Sussed will continually scan the market, looking for the best-fixed rates available, especially when interest rates are rising.

      Using a series of algorithms, our clever technology can identify longer-term fixed rates available today that could save money against predicted rates at the end of your current product term (including the cost of transfer) – sussed is doing all the hard work.

      Equity Available

      With automatic property value updates and your Mortgage information loaded, this feature calculates the amount of equity and the maximum potential loan that may be available within a landlord’s portfolio. This will assist with seeing if there is the opportunity for to perhaps buy another property from leveraging your portfolio.

      Within sussed, you will also be able to see each of your properties with a roadside picture, a confirmed property value, monthly rental, current mortgage balance, payments, interest rate and the Loan to value/Gross rental yield.

      Sussed can help you manage your portfolio.

      Early Review

      This feature is there waiting for interest rates when they reduce. Using the same technology as Rate Riser, sussed will identify if your current deal is now able to be improved.

      Should the interest rates decrease, sussed will compare deals available on the day with your existing deal and flag if there is an opportunity for you to save money by switching.

        Get Me A Quote

        As a condition of a mortgage (unless Leasehold with suitable cover), you will need to hold and maintain adequate home insurance.

        Fill out the 30-second form below and our partners at Nest GI will contact you to discuss your requirements.

        By requesting this service, you agree to be contacted by email, SMS, or telephone by Nest GI Ltd who are FCA authorised and you agree to our Privacy Policy

        Regional Price Limits

        There are price limits on homes you can buy with an equity loan. The limit is different for each region in England.

        • East - £407,400
        • East Midlands - £261,900
        • London - £600,000
        • North East - £186,100
        • North West - £224,400
        • South East - £437,000
        • South West - £349,000
        • West Midlands - £255,600
        • Yorkshire and the Humber - £228,100

          Download your PDF

          For more details on how we handle your data, please view our Privacy Policy

            Contact Us Today

            For more details on how we handle your data, please view our Privacy Policy