If you’re looking to buy a home with a smaller deposit, there’s good news: low-deposit mortgages are making a comeback, and 2025 is shaping up to be one of the best years in nearly two decades to explore your options.
Whether you’re a first-time buyer or moving home, here’s what the rise in low deposit loan-to-value (LTV) mortgages means for you and how SMH Residential Mortgages can help you make the most of it.
More choice for buyers with 5–10% deposits
According to Moneyfacts, there are now 1,287 mortgage deals available at 90% and 95% LTV—the highest number since 2008.
- 442 deals at 95% LTV (just 5% deposit)
- 845 deals at 90% LTV (10% deposit)
That’s nearly double the choice buyers had just two years ago, opening up more opportunities for those who’ve been struggling to save large deposits.
Rates are improving too
It’s not just the number of deals that’s growing, rates for low-deposit mortgages are also slowly coming down:
- 95% LTV (5% deposit)
– Two-year fixed average: 5.81% (lowest in over two years)
– Five-year fixed average: 5.62% - 90% LTV (10% deposit)
– Two-year fixed average: 5.59%
– Five-year fixed average: 5.33%
Mortgage rates have been falling steadily since last year, especially for fixed-rate deals. The difference between two- and five-year fixes is now just 0.14%, giving buyers more flexibility when choosing a term.
Why now could be a smart time to act
The mortgage market has settled in recent months, with more lenders competing for business, especially in the low-deposit space. That competition means better deals and more options for buyers with smaller deposits.
Don’t just go for the lowest rate – get the right advice
It’s tempting to jump at the lowest advertised interest rate, but the best mortgage deal isn’t always the one with the smallest number. Fees, flexibility, and long-term affordability all matter too.
That’s where SMH Residential Mortgages comes in. As an experienced mortgage broker, we search across a wide panel of lenders to find the right deal for your situation.
📞 Call us on 01142 664 432
📧 Or email info@smh.group
As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments. This site is intended for UK residents only and the laws of England are applicable.
Comments are closed.