Homeownership Made (Slightly) Easier: The New £5k Deposit Mortgage

Apr 11, 2024

Surprise news for first-time buyers! 

Accord Mortgages and Yorkshire Building Society have launched a brand new mortgage product that lets you step onto the property ladder with a deposit of just £5,000. That’s right, you can finally ditch the housemate and snag your own place without needing a huge chunk of cash upfront.

Personally I am very surprised to see this. Lenders have had to be poked by the government to lend with a 5% deposit in recent years, let alone £5k! Lenders have been fearful of house prices and potential for negative equity since the last recession. Hopefully this is a show of confidence in UK house prices? Anyways, here are the details:

Here’s the lowdown:

  • Tiny Deposit, Big Dreams: All you need is £5k to get started. This is a significant shift from the usual 5% minimum deposit we’ve seen in recent years.
  • There’s a Catch (of Course): This offer isn’t for everyone. You’ll need a squeaky clean credit history (think spotless payment records and no black marks). Additionally, at least one applicant must be a true first-time buyer with no past property ownership.
  • Product Perks and Limitations: This is a 5-year fixed-rate mortgage, meaning your interest rate is locked in for the first five years. The minimum property value is £100,000, and the maximum is capped at £500,000. There’s also a limit on how much you can borrow – a maximum of 4.49 times your income. Keep in mind, this is a Capital & Interest product only, so you won’t be chipping away at the principal amount with your monthly payments.
  • Seek Professional Help: This new mortgage isn’t a one-size-fits-all solution. Get advice from a qualified mortgage broker to see if it aligns with your financial goals and situation. Remember, there are always risks and rewards associated with any mortgage, so make sure you understand everything before diving in.

Word to the Wise: 

As with any mortgage, failing to make your payments could lead to repossession of your property. So, make sure you can comfortably afford the monthly payments before taking the plunge.

This new £5k deposit mortgage could be a game-changer for many first-time buyers. But remember,  proceed with caution and get expert advice to ensure it’s the right move for you.

Steven Morris – Advising Director



Steve loves a complex mortgage. Most recently he has used his technical geekery to work his way up through Which? Mortgage Advisers, progressing to Senior Adviser and then Onboarding Manager. There, he was responsible for hiring, training and managing new advisers.

He also ran the monthly new starter inductions and wrote and maintained the telephony advice standards of the company. Outside of work Steve can be found coaching and being run ragged by his local under 10’s rugby team, Bristol Harlequins RFC.

Meet the rest of the Advantage Team

Why a Local Mortgage Advisor Makes All the Difference for Your Bristol Home Journey

Congratulations! You've decided to take the exciting (and sometimes daunting) step of buying a home in Bristol or the surrounding area. Whether you're a first-time buyer eager to step onto the property ladder or a seasoned mover looking for your next dream home,...

Are mortgage rates in the UK going up or coming down 2024

I thought mortgage rates were coming down in 2024, what is happening?  Let’s get a misconception out of the way early about how mortgage rates have been changing… Mortgage rates available during January 2024 were cheaper than anything else we have seen since. For...

UK Mortgage Rollercoaster: Rates Tumble, Yet House Prices Remain a Challenge (April 6, 2024)

MARKET WATCH! UK Mortgage Rollercoaster: Rates Tumble, Yet House Prices Remain a Challenge (April 6, 2024) This week in UK mortgages has been a tale of two trends: good news for potential borrowers with falling rates, and lingering concerns for some facing a tough...

UK Mortgage Rates: A Quick Look at the Last Week (as of March 24th, 2024)

MARKET WATCH!  UK Mortgage Rates: A Quick Look at the Last Week (as of March 24th, 2024) This week in the UK mortgage market (as of March 24, 2024), we've seen a relative pause after several weeks of steady increases in interest rates. The Bank of England (BoE)...

Help! I’m a Birmingham Midshires Residential Mortgage Customer

Birmingham Midshires Exited Direct Mortgage Market in 2011: What Existing Customers Need to Know  Important information for Birmingham Midshires mortgage holders: As of October 1, 2011, Birmingham Midshires made a significant change – they stopped offering...

February 26th 2024 mortgage news

Halifax buck the trend In a surprising move, Halifax, the UK's biggest mortgage lender, has cut its mortgage rates, going against the recent trend of lenders raising theirs. This move is seen as an attempt by Halifax to gain market share in the competitive mortgage...

February 14th 2024 mortgage news

What's in the news? February 2024   The cost of moving and stamp duty is putting millions of homeowners off of potentially downsizing. Older homeowners are unable to move to smaller properties because of the financial burden that comes with a house move, and this...

Navigating the Financial Maze of Downsizing in Retirement: What are Bridging Loans?

Retirement often marks a period of transition, a time to embrace new experiences and simplify life. Many retirees consider downsizing their homes, seeking a smaller, more manageable living space that aligns with their changing needs and lifestyle. However, the...

Mortgage rates are falling in the UK as lenders battle for business in 2024

After a gruelling two years of rising interest rates, the UK mortgage market is now seeing a price war as lenders compete for business. This is good news for borrowers, who are now finally seeing rates fall. Halifax, one of the country's biggest mortgage lenders, has...

Why is only one of our incomes used on a RIO mortgage UK

What is a Retirement Interest-Only (RIO) Mortgage? A Retirement Interest-Only (RIO) mortgage is a type of mortgage that allows borrowers 55 or older, to purchase or refinance a home without being forced to clear the debt by the end of the term. This is because RIO...

Celebrating more 5-star reviews than any other independent broker in Bristol!

Contact us today to find out why we've received over 400 hundred 5-star Google reviews

You have Successfully Subscribed!