Low deposit product number hits five-year high

February 24, 2025 by Brendan O'Neill

Property Market

The total number of low-deposit products that are available on the market has reached a five-year high, according to the latest piece of research into the UK mortgage sector.

This statistic is taken from the UK Mortgage Trends Treasury Report published by Moneyfacts. What that report shows is that there are a total of 388 products within the 95% LTV range on the market right now. This is the highest number that there has been in five years. The last time the UK market had more 95% LTV products than that was March of 2021. Back then, there were 391 available.

Speaking to FT Adviser, Rachel Springall from Moneyfacts stated that it would be pleasing news for those looking to borrow who are unable to afford large deposits. She then went on to add that:

“This is positive to see, but there is still lots of room for more deals to be pushed out in this area of the market as it represents just 6% of all deals available to borrowers across fixed and variable mortgages.”

Springall then made the point that rates for mortgages of this kind were still higher than they were when the year began. That has the potential to cancel out some of the appeal for borrowers on tight budgets.

Current average rates for them are 5.72% for fixed five-year deals and 5.94% for fixed two-year loans.

Most mortgage advisors with the CeMAP qualification will be hoping that more of these products are introduced, now that rates are starting to fall.