By Clare Yates
3 min read
Would-be homeowners are heading into 2026 with a level of choice they haven’t seen in almost twenty years. The low‑deposit market has burst back into life, giving people who’ve been stuck renting a far better shot at buying.
And with deposits still the biggest stumbling block for most first-time buyers, the sudden wave of new options is landing at exactly the right moment.
A surge in 95% mortgages
New figures from Moneyfacts show just how quickly things have shifted. At the start of February, there were 537 mortgages available that allow borrowers to put down just 5% - that’s almost double the 274 deals on offer in February 2024.
According to Moneyfacts, the number of 95% loan‑to‑value products is now at its highest point since March 2008. They say that 2026 is shaping up to be a far more encouraging year for first‑time buyers who have struggled with affordability pressures.
For those looking at fixed rates, new two‑year deals at 95% LTV were starting at around 4.47% recently, with five‑year fixes beginning at roughly 4.53%.
Buyers who can stretch to a 10% deposit have an even wider pool to choose from. Moneyfacts counted 981 mortgages at 90% LTV at the start of February, the highest number on record.
Lenders push beyond 95%
Some lenders are going further still. Santander recently made headlines with a new five‑year fixed mortgage allowing first‑time buyers to borrow up to 98% of a property’s value, provided they can put down at least £10,000. It’s the biggest high‑street lender so far to move above the 95% threshold.
But it’s not alone. Skipton Building Society continues to offer its 100% mortgage, while Yorkshire Building Society has a 99% LTV option, part of a small but growing cluster of ultra‑high‑LTV products aimed at renters who are stuck saving while rents rise. These deals often come with tighter criteria or property restrictions, so they’re not open to everyone.
Many buyers underestimate their options
Fresh research from the Building Societies Association (BSA) suggests that a lot of aspiring homeowners may be closer to buying than they realise. The BSA found that 47% of people hoping to purchase a home had never spoken to a lender or broker to check what they could borrow, and almost half of those who had sought advice hadn’t done so in the past year.
When shown examples of low‑deposit and no‑deposit deals available from building societies, two‑thirds of would‑be buyers said they could probably buy sooner than they’d assumed. It highlights a gap between perception and reality that could mean many people are missing out on their first step onto the property ladder.
