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According to recently published figures from financial information service Moneyfacts the number of deals requiring a deposit of 5% or 10% have risen to their highest level for 17 years.
442 mortgages available for a 5% deposit
While two years ago there were only 204 deals available for buyers with a deposit of 5% of the home loan, there are currently 442 mortgages to choose from, revealed Moneyfacts.
845 mortgages available for a 10% deposit
For those able to pay a 10% deposit, there are now 845 mortgage products available. This is an increase from the 684 available in 12 months ago. However, this means they will typically pay a mortgage rate of well over 5% on average, as opposed to a borrower with a 40% deposit, who typically pays a rate of under 5%.
Moneyfacts’ Rachel Springall said there is now a “flourishing choice” of mortgages for borrowers who are unable to pay a larger deposit. "A rise in product availability for aspiring homeowners is a healthy step in the right direction," she stated.
However, she revealed that despite the increase in low-deposit mortgage deals, only 6% of all fixed and variable mortgages had a deposit requirement of 5%, adding there was still "room for improvement".
A vibrant property market
While mortgage rates remain hard to predict due to uncertainties in the wider economy, the property market is vibrant, with prospective buyers having to move fast.
According to new figures from the property portal Zoopla, homes in England and Wales spend an average of 36 days on the market before a sale is agreed. Two-bedroom homes accounted for the fastest sales, at an average of 23 days. Four or more bedroom homes typically took 38 days.