There are now more mortgage deals available with low deposits than at any point since the 2008 financial crisis, according to the latest research. This increase in low-deposit options is providing much-needed hope for aspiring homeowners, especially first-time buyers.
Recent data from financial information provider Moneyfacts reveals that mortgage products requiring deposits of just 5% or 10% have hit a 17-year high. This marks a significant shift in the lending landscape, offering more flexibility for buyers who may struggle to save large deposits.
Although this broader selection of low-deposit deals is a positive development, it comes with challenges. Average house prices and mortgage interest rates remain considerably higher than they were throughout much of the last two decades. For many, this means affordability is still a key concern despite the increased availability of mortgage products.
At the same time, competition in the property market is heating up. According to separate figures from Zoopla, homes are typically on the market for just over a month before being snapped up. This brisk pace puts additional pressure on buyers to act quickly and decisively.
Overall, the UK property market has shown signs of stability recently. However, buyers must continue to navigate economic uncertainty, particularly around interest rate movements and recent stamp duty changes in England and Northern Ireland. While the increase in low-deposit mortgages is welcome news, securing the right deal still requires careful planning and preparation.
‘Flourishing choice’
Homebuyers with just a 5% deposit now have a significantly wider range of mortgage options available. According to Moneyfacts, there are currently 442 mortgage products for those with a 5% deposit—more than double the 204 options available just two years ago.
For those able to provide a 10% deposit, the choices are even broader. As of April 2025, there are 845 products to choose from, up from 684 a year earlier. This increase offers some hope to first-time buyers who are struggling to get on the property ladder.
Despite the greater choice, mortgage rates remain relatively high. Buyers with a 5% or 10% deposit can still expect to pay an average interest rate well above 5%. In contrast, those putting down a 40% deposit typically benefit from lower rates, often under 5%.
Rising rental costs have made it increasingly difficult for many would-be first-time buyers to save for a deposit. The burden of rent, combined with general living expenses, continues to be a major barrier to homeownership.
One such example is Doug Hepper, a 30-year-old father from Tewkesbury. He dreams of buying his first home but says the cost of living has made that dream feel out of reach. “When I was growing up, I thought it was normal to get married, have kids, and buy a house by the time you were 30,” Doug shared. “The child came first, but I never imagined buying a house would be so difficult.”
Despite these challenges, experts point to a positive shift in the mortgage market. Rachel Springall, a finance expert at Moneyfacts, acknowledged that product availability has grown, which is a step in the right direction for those with limited deposits. “There’s a thriving number of mortgage products now available for buyers who are stretched when it comes to saving for a deposit,” she said.
Still, Springall cautioned that only a small portion—around 6%—of all mortgage deals currently on the market cater to those with just a 5% deposit. This suggests that while the market is improving, there is still more work to be done to support entry-level buyers.
Adding to the uncertainty is the unpredictable nature of mortgage rates. Global economic factors, such as recent US tariff decisions, are affecting financial markets and could influence future rate movements.
For now, first-time buyers must weigh up their options carefully, staying alert to rate changes and mortgage product availability as they plan their next steps.
Getting approved for a mortgage is only part of the process—finding and securing a new home often needs to be done quickly too, according to recent data.
Figures from property portal Zoopla reveal that homes in England and Wales typically spend just 36 days on the market before an offer is accepted. This highlights the need for buyers to act fast once they’ve sorted their finances.
Zoopla also found that half of all listed homes are sold within two months. However, even after an offer is accepted, completing the sale can take between four to six months, depending on how complex the deal is.
Two-bedroom homes tend to be the quickest to sell, with sales agreed in just 23 days on average. In comparison, larger homes with four bedrooms or more usually take around 15 days longer to reach a sale agreement.
Interestingly, properties in northern parts of England often sell more quickly than those in the south. This is likely linked to the lower average house prices in the North compared to the South.
Despite this trend, some of the fastest-selling areas offer a mix of locations across the country. Manchester and Waltham Forest in London both recorded average sale times of just 19 days, making them the top-performing areas.
Richard Donnell, executive director at Zoopla, offered advice for those planning to sell and move in 2025. He encouraged sellers to price their homes realistically and take on the guidance of local estate agents.
He explained that buyers now have more choice on the market than they did a year ago. This means setting a price that’s too high could make it more difficult to sell and potentially result in a longer wait for an offer.
To ensure more accurate data, Zoopla uses the median average to measure time on the market. Homes that remain unsold for more than six months are excluded, as they are seen as unlikely to sell in the current market.
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