First-time buyers looking to get onto the property ladder with a minimal deposit have received a major boost, as Accord Mortgages has expanded its £5K Deposit Mortgage proposition to include flats. This enhancement makes it even easier for buyers to secure a home with as little as £5,000 upfront, widening the accessibility of homeownership amid rising property costs. The Accord £5K deposit mortgage scheme has helped many borrowers struggling with saving a large deposit since it’s launch, and this new expansion can only be a positive move. Especially in places like London where flats and apartments are much more common first purchases.
What is the Accord £5K Deposit Mortgage?
Accord Mortgages introduced the £5K Deposit Mortgage to support first-time buyers who may struggle to save for a traditional deposit. The product allows borrowers to secure a home with just £5,000, provided they meet the lender’s criteria. In the days of schemes like Help to Buy, it was not uncommon for first-time buyers to be able to put down minimal deposits, however since the scheme finished, new buyers are increasingly having to put down more and more deposit and rely on the Bank of Mum and Dad. Here is a breakdown of some of the main features and benefits of the Accord £5K deposit mortgage.
Key Features of the £5K Deposit Mortgage
- Low Deposit Requirement: Buyers only need a £5,000 deposit, significantly reducing the upfront cost of purchasing a home.
- High Loan-to-Value (LTV): The mortgage covers up to 99% of the property’s value.
- Maximum Property Price: The scheme applies to homes valued up to £500,000, with a maximum loan size of £495,000.
- Flexible Repayment Terms: Loans can be repaid over a term of up to 40 years, with the borrower’s age not exceeding 70 at the end of the term.
- Overpayment Options: Borrowers can make overpayments of up to 10% of the outstanding loan balance annually without incurring charges.
- First-Time Buyer Focus: At least one applicant in a joint application must be a first-time buyer, and applicants cannot own any other property.
What’s New? Flats Now Included
Previously, the £5K Deposit Mortgage was only available for houses, but following feedback from brokers and customers, Accord has extended eligibility to flats. Obviously, this change has the potential to help even more first-time buyers, particularly those looking to purchase properties in urban areas where flats are often the most affordable option. Like London. While the inclusion of flats marks a significant enhancement, other key elements of the mortgage remain unchanged:
- New-build properties are not eligible.
- The maximum property price remains £500,000.
- The maximum loan size is still £495,000.
Speak To A Mortgage Advisor
Accord’s £5K Deposit Mortgage has already helped many first-time buyers take their first step onto the property ladder. Now, with the inclusion of flats, the initiative has the potential to benefit even more people looking for an affordable way to own a home. If you or anyone you know is looking to buy their first home, then please feel free to contact our team today. We are here to help.
