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5% deposit mortgages in 2021?

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I’m planning to buy my first house this year and I am currently in the process of saving for my deposit. I’ll easily have 5% of the house price saved by late summer, but how realistic is it that mortgage brokers will be offering the 5% deposits this year? When do you think they’ll return? 

Comments

  • Doubt it will be this year, keep saving your deposit, the time will fly by.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • K_S
    K_S Posts: 6,877 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 17 February 2021 at 7:16PM
    T0m121 said:
    I’m planning to buy my first house this year and I am currently in the process of saving for my deposit. I’ll easily have 5% of the house price saved by late summer, but how realistic is it that mortgage brokers will be offering the 5% deposits this year? When do you think they’ll return? 
    @T0m121 Impossible to say for sure. In the very unlikely event that it's clear the economy has turned the corner by late summer/early autumn, I would expect at least a couple of lenders to start dipping their toes back in the 95% LTV market before the end of the year.

    As an FTB, you could always explore the H2B option though with a 5% deposit.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • Well everyone doubted 90% LTV mortgages and they've flown back. Wouldn't be surprised if there is a 95% mortgage by Easter
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