Mortgage lenders back offering 10% deposit rates

Tags: First-time buyers, Residential mortgages

Quick Summary

The UK mortgage market has shifted decisively in favour of homebuyers with a 10% deposit, with lenders increasingly backing 90% loan-to-value (LTV) mortgage products. After years of limited choice at higher LTVs, a growing number of banks and building societies have re-entered the market with competitive deals that let borrowers purchase with just a 10% deposit — significantly broadening access for first-time buyers and home movers alike. This trend follows broader market developments, with a record number of low-deposit mortgage deals available to prospective buyers as lenders respond to demand and adapt to the evolving economic environment. With more than 900 mortgage products currently on the market for those with a 10% deposit, competition is intensifying, and choice has never been wider for those prepared to take the step onto the property ladder. It is worth noting that there are a lot of schemes available at the moment designed to help first-time buyers.

by Aaron Strutt

Jan 14 2026

At least 50 banks and building societies have resumed offering 10% deposit mortgages, boosting the options available to first-time buyers.

Which banks and building societies offer 10% deposit mortgages

There are over 50 high-street banks and building societies now offering 90% loan-to-value (LTV) mortgages — meaning you can secure a mortgage with a 10% deposit. These products are primarily aimed at first-time buyers and buyers with modest deposits who have been renting or waiting for a good time to get on the property ladder. If you want to buy a £350,000 property with a 10 per cent deposit, you only need £35,000 in savings to get a mortgage.

The latest Connells Group February market brief highlights that the UK housing market has kicked off 2026 with a surge in activity from first-time buyers. First-time buyers purchased 34.3% of homes sold across Great Britain in January. In London, first-time buyers now account for 48.3% of purchases.

Main lenders with 10% deposit mortgage options

The following lenders regularly offer 90% loan-to-value mortgages (i.e., 10% deposit products):

Halifax via brokers– 90% mortgages available for first-time buyers and home movers with a 10% deposit. The Halifax First Time Buyer Boost is a mortgage scheme designed to help first-time buyers secure their first home. Eligible buyers can borrow up to 5.5 times their annual household income.
NatWest – 90% LTV products for eligible buyers.
Nationwide Building Society – 10% deposit mortgages with specific eligibility requirements. Popular with Nationwide's Helping Hand 5.5 times income scheme.
Barclays – 10% deposit mortgages are often available across both fixed and variable deals. Now offering up to six times salary mortgages.
HSBC – Offers 90% LTV mortgages with terms up to 40 years, subject to criteria. Offers 6.5 times salary mortgages for higher earners.
Santander – Traditional 10% deposit deals, in addition to recent near-10% deposit products (e.g., 98% first-time buyer deals), though the latter have stricter rules. Generally offers market-leading rates at the moment.
Skipton Building Society / Virgin Money – Also known to operate in the 10% deposit market with competitively priced fixed rates.

Note: Some products extend beyond 95% LTV, for example Santander’s 98% first-time buyer mortgage, but these tend to have more restrictive terms including maximum loan caps, stricter income multiples, and tighter property eligibility.

Comment from Aaron Strutt, Product Director at Trinity Financial, on the 10% deposit mortgage market...

“In the current market, 10% deposit mortgages can be a valuable route onto the property ladder, especially for first-time buyers. There is a lot of compeiton in the market to attract the icresasng number of first time buyers. If you have a 10% deposit then it really makes sense to ensure you are getitng the most compeitively priced rate. Lenders scrutinise income, outgoings, credit history and the sustainability of your financial position. Working with a broker early not only clarifies which lenders are most receptive to your circumstances but also helps tailor your application to meet each lender’s specific rules. It is worth noting that rates are much cheaper if you could raise access a 90% ltv mortgage, so have a 10% deposit. There are alot of first-time buyers schemes being offfered at the moment."

Typical lending criteria for 10% deposit mortgages

Although each lender sets its own criteria, most banks and building societies assess applications against the following key tests:

Mortgage affordability and income requirements

A robust income assessment — lenders will check salary, bonuses, and sometimes additional income sources.
Typical affordability calculators consider outgoings, existing credit commitments, and repayment capacity. Think twice about getting a loan or taking a car on finance before you apply for a mortgage, as it will probably reduce your borrowing capacity.
Some lenders will apply an income multiple cap (e.g., 4.5× to 6.5× single or combined income).

Deposit source and size

A minimum 10% cash deposit of the property value is required (some require this to be genuine own savings).
Some schemes limit acceptance of gifted deposits unless from certain family members or under specific rules.

Property rules for 10% deposit mortgages

Usually available for main residence (owner-occupier) only — not buy-to-let or second homes.
Lenders may set property price caps (commonly around £600,000 for standard 95% products).
New-build properties can be more challenging without government or insurer backing.

10% deposit mortgage maximum loan sizes

Maximum mortgage amount: Up to £750,000 on 90% LTV deals, subject to eligibility, affordability and underwriting checks. This limit was increased from £500,000 and applies across their 90% LTV product range. The maximum loan size with a 10% deposit through Halifax is also as high as £750,000.

Credit profile

An acceptable credit history is essential; adverse records can restrict eligibility. Keep an eye on your credit record well in advance of applying for a mortgage using a system like Checkmyfile, because it checks multiple credit reference agencies.
Lenders will look at credit score, recent defaults, CCJs, and repayment history.

Repayment basis

Repayment mortgages (capital + interest) are generally required for 90% LTV products — interest-only is unlikely to be approved at this level.

Which lenders offer the most competitive two-year fixed rates with a 10% deposit?

10% deposit mortgage lender	Initial Rate (%)	Revert Rate (%)	Borrower Type	Product Two-year fix	Max LTV (%)	Fees (£)	True Cost (£)	Cashback (£)	Legal Fee Payable (YN)	Valuation Fee Incentive?	APRC (%)
Bank of Ireland UK	3.99	6.94	FTB, STB, RMTGS	Fixed	90	1,495	20,977	No Cashback	Yes	Free	6.6
West Brom BS	3.99	6.24	FTB, STB	Fixed	90	1,499	20,981	No Cashback	Yes	Free	6.1
Santander	4.03	6.50	STB	Fixed	90	999	20,311	250	Yes	Free	6.2
HSBC	4.04	6.24	STB	Fixed	90	999	20,331	250	Yes	Free	6.0
HSBC	4.04	6.24	STB	Fixed	90	999	20,581	No Cashback	Yes	Free	6.0
Furness BS	4.05	7.99	FTB, STB, RMTGS	Fixed	90	999	20,426	250	Yes	Free	7.5
Nationwide BS	4.07	6.49	STB	Fixed	90	999	20,640	No Cashback	Yes	Free	6.3
Halifax	4.07	7.24	STB	Fixed	90	999	20,740	No Cashback	Yes	No	6.8
The Co-operative Bank for Intermediaries	4.08	6.62	FTB, STB	Fixed	90	999	20,411	250	Yes	Free	6.3
Virgin Money	4.10	6.74	STB	Fixed	90	999	20,700	No Cashback	Yes	Free	6.3

Source: Moneyfacts

Lending solutions with Trinity Financial

Are you looking to buy a property and require expert advice? We’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.

Call Trinity Financial on 020 7016 0790 to secure a 10% deposit mortgage, book a consultation or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Is a mortgage broker worth it for a first-time buyers?

Yes — it is pretty hard to argue that for most first-time buyers, it is not worth using a good mortgage broker with great reviews. They can help find suitable deals (including ones you might not find yourself), save time on research, explain complex terms, and guide you through the application process. They can tell you all of the mortgage options available, including how much they cost and the minimum or maximum amounts you can borrow, subject to mortgage affordability. A good broker will also advise the size of the deposit you need to get a good mortgage and let you know which lender is the most suitable one for your situation. They will even consider what position you will be in when your fixed or tracker rates expire and work out whether the lender will offer you a good new deal or product transfer/rate switch. However, it’s important to consider fees and choose a reputable broker to make sure the value you receive outweighs the cost. A reasonable broker fee for a first-time buyer is up to £495 unless your situation is particularly complex or you need to use an adverse credit lender.

Is it cheaper to go through a mortgage broker?

If your situation is straightforward and you understand mortgages and how the banks and building societies work, then it may make sense and potentially be cheaper to arrange your own mortgage. This depends on the broker you use, whether they charge a fee, and, obviously, the rate you consider cheapest versus the one a broker recommends.

In many cases, brokers can receive mortgage offers from lenders more quickly than first-time buyers when they are applying directly. Mortgage lenders typically do not notify first-time buyers when they are withdrawing and increasing their rates, which means a broker can often secure more competitively priced rates before they are withdrawn. Brokers can also swap rates if and when cheaper mortgages become available, once the mortgage offer is produced.

What is the 4.5 rule for mortgages?

The 4.5 rule for mortgages is an outdated rule or guideline, not really used by many UK mortgage lenders at the moment, to assess mortgage affordability and the amount someone can borrow. Banks and building societies used to allow borrowers to access up to 4.5 times their annual income, depending on their financial situation, but this is now more likely to be 5, 5.5, or even 6 times single or joint salaries.

What is the 4.5 Rule? The 4.5 rule is a common affordability guideline used by mortgage lenders in the UK. It suggests that you can borrow approximately 4.5 times your annual income when applying for a mortgage. For example, if your annual income is £50,000 and you have a good credit score, you could potentially borrow up to £225,000. However, this is just a starting point, and lenders will consider various factors before making a final decision. As listed in Trinity's Best First Time Buyer Mortgages Guide, there are lots of schemes offering much more than 4.5 times salary mortgages, which is key because house prices are so high in many parts of the UK.

What not to tell a mortgage broker?

Some FAQs online include ones from first-time buyers, such as "What not to tell a broker?" If you have decided to apply for a mortgage via a broker, then it is advisable to be open and honest. If you have missed payments, a deposit from overseas, or have not been truthful about your income or the amount you are paid, there is a good chance you will be found out. Even if your broker does not find out exactly what's happening, this is likely to be highlighted by the bank or building society you apply to. If there is "scheme manipulation", you could be added to the CIFAS register, which means you will find it hard to borrow for up to six years, plus your application will probably be declined, and the broker could face disciplinary action. Please be open and honest with your mortgage adviser because they are more likely to identify options for you with the information they need.

A step by step guide to using Trinity Financial

• You contact one of our consultants by calling 020 7016 0790 or complete our basic enquiry form or mortgage questionnaire for a more detailed initial response.
• You tell us what you are looking for, and we assess your mortgage and financial protection needs based on your monthly budget.
• We collect the necessary information and documentation that banks and building societies require.
• Based on the information provided, we offer you illustrations of the most suitable products for your specific circumstances.
• We then submit the application on your behalf to secure a mortgage offer as quickly as possible. This is once you have confirmed you are happy to proceed.
• We manage the application through to completion and liaise with all involved parties, including valuers, estate agents, and solicitors.
• Post-completion we are available for any questions. When you reach the end of your initial product, we are also able to discuss any further mortgage, will or financial protection product requirements.

As part of our ongoing service commitment, we will contact you at least four months before your fixed or tracker rate expires to ensure you avoid reverting to an expensive, standard variable rate.