£5000 Deposit Mortgage – 99% Mortgages

The main concern First Time Buyers have when getting onto the property market is raising a big enough deposit in the first place. Well now I’m happy to say we have a lender that will lend up to 99% of the property value!

Minimum Deposit £5000

As the title suggests the minimum deposit you can put down is £5000 this means if you aim to purchase a property at £500,000 you will only be raising a deposit for just 1% of the property value. Now I understand most first time buyers wont be looking at £500,000 properties. So instead let’s take a look at a £250,000 property, usually for a First Time Buyer to buy a house of this value they would need a deposit of £12,500 WELL NOT ANYMORE! With this new product they can still buy the property with just a £5000 deposit giving a 98% Loan to Value.

What if I’m not a First Time Buyer?

This product only requires one of the purchasers to be a first time buyer. So this means if one of you is a first time buyer but your partner isn’t you would still be eligible for this product.

Can I retain my existing house?

The more savy home owners with a entrepreneurial drive may look at this opportunity as a way to start to build a property portfolio. Unfortunately this product does not allow any other properties in the background. So if you have a Buy to Let or a second Residential property you will not be eligible for this product.

How long does the product last for?

This product only allows for a 5 year fixed rate option, as it stands at the moment the lender will not allow for a 2 year option.

Explain the Loan to Value Criteria?

So firstly, Loan to Value (LTV) means the amount the lender is borrowing vs how much the property is actually worth, for for instance if the property is worth £100,000 and you have £5000 deposit, the lender would be lending against 95% of the properties value. Prior to this product going live 5% was the minimum deposit you could put down, however I’m delighted to say Accord will lend between 95% and 99% allowing you to get onto the property ladder with just a £5000 deposit.

What’s the minimum the property can be worth?

So because the minimum deposit is £5,000 this means the minimum property value will be £95,001 because at £95,000 you would be using a standard 95% mortgage.

What’s the maximum the property can be worth?

The Maximum property value for this product is £500,000 – because the minimum required deposit is £5000 if you purchased a £500,000 house you would be getting a 99% mortgage.