Exciting news for first‑time buyers, as many lenders introduce new £5,000 deposit mortgages.
Getting a deposit together is one of the biggest barriers to getting on the property ladder, so from 18 May 2026, a range of new products are expected to launch that significantly reduce the minimum deposit required. Lenders including Lloyds, Halifax and Bank of Scotland have already announced plans to support lower‑deposit borrowing.
What does this mean for you?
As a first-time buyer you may be able to purchase a property with a lower upfront deposit than previously required. This could make buying your first home achievable sooner if saving a larger deposit has previously been a barrier.
What are the considerations?
There are still lots of considerations when buying your first home, so it’s important to understand your options and receive professional advice before making any decisions.
- Mortgage availability and terms
These will vary between lenders and products so it is important that you work with a mortgage adviser that will scope the whole of market and find a suitable product for you and your circumstances.
- Higher monthly payments
A lower deposit often means higher monthly repayments compared to larger deposits so it is important that you create a budget to ensure that you can afford future payments.
- Affordability checks
You’ll still need to meet affordability, credit and lending criteria. Credit score is something strongly considered by lenders when looking at mortgage rates and terms. A higher credit score means that lenders are more likely to approve your application for a mortgage and offer you lower interest rates.
- Additional expenses
It is important to consider any costs outside of the mortgage payments such as fees, legal expenses and surveys that will need to be carried out ahead of moving in.
- Availability and product changes
These products may be limited in number or subject to change so it’s important to act at the right time and understand the options available to you.
Next steps
The first step is to review your options and budget to see what you are comfortable paying each month, taking into account both mortgage repayments and ongoing living costs. From there, it’s important to check your credit score, understand how much you may be able to borrow, and factor in additional costs such as legal fees and surveys.
How we can help
Seeking professional advice can help you explore the full range of options available and ensure any decisions are right for your circumstances now and in the future.
At PM+M, our expert mortgage adviser, Mark Chadwick, can provide you with informed recommendations about the most suitable mortgage products available to you. He will be able to guide you through the process of purchasing your first home with ease so that you can make the correct choices for you and your financial goals.
For further advice and to explore your options, please contact our mortgage director, Mark Chadwick, by clicking the button below.
PM&M Mortgages Ltd is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
