More first-time buyers picking low-deposit mortgages
November 30, 2025 by Mark
Home owners
The number of first-time buyers who are choosing to take out lower-deposit mortgages is on the rise, according to the latest research by Barclays.
In its new property insights report, the bank reveals that 22.1% of the mortgage completions by first-time buyers in October were for ones with deposits below £20,000. By way of comparison, the figure for the same month in 2024 was 13.5%. When it comes to possible reasons for this rise, Barclays is speculating that it could be a way for people to buy for the first time, even during a period of increasing living costs.
There are certainly still plenty of people looking to take that step. Those buying for the first time made up 36% of the total Barclays mortgage completions for the past year.
However, the report also laid bare the financial struggles for many. Almost half of those who rent told the report that it would not be possible for them to buy without either family help or a guarantor. For September, the figure was 42%.
Another six out of every 10 renters said that home purchase support schemes or financial incentives would be needed.
Jatin Patel is the head of insurance, savings and mortgages at Barclays. He told Mortgage Finance Gazette that:
“The increasing appetite for low-deposit mortgages demonstrates that getting on the property ladder remains a priority for renters.”
He then added that it also shows the importance of lender innovation in helping them.
Those who have the CeMAP mortgage advisor qualification will be likely to agree on both points.
Written by
Mark
You may also interested in:
More first-time buyers reported by Nationwide
Nationwide has revealed that the number of first-time buyers who are opting for its product called Helping Hands has
First-time buyers overpaying mortgages to speed up repayments
The latest research has found that a number of first-time buyers who bought during the last five years are overpaying their mortgages, with the aim of
