The i - New 1% deposit mortgage for first-time buyers with just £5k – but there’s a catch

Aaron Strutt Image

A new 1 per cent mortgage aimed at helping first-time buyers on the property ladder has launched.

The deal will allow homeowners to borrow up to 99 per cent of the property’s value, with a low deposit.

Aaron Strutt, of Trinity Financial, told i: “The Government decided against backing the 1 per cent deposit scheme in the recent budget so it seems like Yorkshire Building Society has launched it anyway.

“Many renters are desperate to get out of the rental sector and they have very little savings. Products like this give them the chance of getting on the property ladder without the standard 5, 10 or 15 per cent deposit.”

He added: “The rate is not particularly cheap but it is reasonably priced compared to some of the low deposit deals we have seen recently. This is clearly a product designed to help more first-time buyers on to the property ladder and compete with Skipton’s 100 per cent mortgage.

“The issue is that we are still not building enough homes and many first-time buyers simply cannot meet the tough affordability calculations to get a sufficiency large mortgage.”

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