Call us: 0345 305 2540

Low-deposit mortgage deals are returning to the market

MORTGAGES | 22.01.2021

Last year the mortgage market suffered significantly from a slowdown due to the ongoing pandemic, with many low-deposit mortgage deals disappearing, putting a strain on first-time buyers in particular. However, now it seems that low-deposit mortgages have made a return as the housing market begins to emerge from the downturn.

More mortgage products available

According to financial information service Moneyfacts, the number of low-deposit mortgage products, which offer deposits as around the 10% mark have started to increase. This will undoubtedly offer some much needed relief to many borrowers, especially those looking to take their first steps onto the property ladder. Homeowners with a deposit of 10% of their property's value have increasingly more products available to them, when compared to the summer of last year. 

Cost of mortgages could remain an issue for many borrowers 

Despite the increasing number of mortgages that require lower deposits coming back to the market, the cost of these deals may still remain an issue for many borrowers looking to get hold of a property. Last year, many first-time buyers who had put money aside for a 10% deposit faced the increasing pressure from poor savings rates and rising house prices. Those looking to purchase their very first property were likely concerned that their homeowner aspirations were going to be shelved last year.  Thankfully, the choice of deals on the market has risen since then, with big lenders returning to offer more varied deals for those with less of a deposit to put down. The effects of coronavirus of course has a significant impact on the market, causing it to stay in a near constant state of flux over the last year. Lenders were grappling with the practical effects of the pandemic and how their businesses had been effected. Many traditional lenders withdrew products from the market simply because they were unable to process applications quick enough, due to staff shortages and employees working from home. First-time buyers who were in a more risky position in terms of finances could also struggle to make their mortgage repayments due to the heavy economic slowdown caused by the pandemic.  The future though is looking brighter for borrowers as many of the biggest mortgage lenders have slowly returned to the market. And although rates are perhaps not as attractive everywhere as they had been previously, the activity in the market is looking for positive overall.

Now could be the perfect time to secure a mortgage

Securing the best mortgage deal for you will of course depend on your individual circumstances and financial situation. If you are looking for a mortgage during this time, it can help to speak to an experienced mortgage broker who can search the market and ensure you get the right deal. At TaylorMade, our team can guide you through all the options available to you, to find you the best deal for your specific circumstances. For more information get in touch with us today on 0345 305 2540, or at info@taylormade-finance.co.uk.
Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

By clicking on the above link you will be leaving the regulated site of TaylorMade Finance Ltd. TaylorMade Finance Ltd is not responsible for the accuracy of the information contained within the linked site.

TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.

Complaints:

In the event that you wish to complain, you can contact us by email, telephone or letter.

Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Email: complaint.info@financial-ombudsman.org.uk
Phone: 0800 0234 567

Your mortgage will be secured against your property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our fee for this service is 1.95% of the mortgage balance (minimum £1,295 to a maximum of £2,995 although reduced to maximum £1,995 without debt consolidation). Typically this will be £1,995.