The availability of 5% deposit mortgages in now on the increase in the UK allowing many more people the option of getting on the property ladder. The number of mortgage deals now available with a 5% deposit totals 307. (data taken from survey carried out by Moneyfacts).
Typical interest rate of the 5% deposit mortgages is 4%.
This is the highest number of 5% mortgage deals available since the financial crisis struck the country. Due to the crisis lenders favoured lower-risk option mortgages with higher deposits put forward. Regulators of the mortgage industry also demanded safer approach options to calm the market in the future whilst the banks tried to rebuild.
With mortgage approvals at a low over the period of the last 5 years, mortgage providers are now at a higher level of competition with one another over a smaller number of customers.
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