Accord Mortgages expands £5K Deposit Mortgage to flat buyers

It also reduces rate of first-time buyer product

Accord Mortgages expands £5K Deposit Mortgage to flat buyers

Accord Mortgages has extended its £5K Deposit Mortgage to include flat purchases, responding to broker feedback and increasing accessibility for first-time buyers.

The intermediary-only lender, part of Yorkshire Building Society, launched the product last year, allowing buyers to purchase homes valued up to £500,000 with just a £5,000 deposit. The expansion maintains all existing terms and conditions while broadening eligibility to include flats.

The £5K Deposit Mortgage remains a five-year fixed rate product, now at 5.69% down from 5.74%. It is available only to first-time buyers on a capital and interest repayment basis, with a maximum borrower age of 70 at the end of the mortgage term. The product applies to non-newbuild houses and flats.

“We’re absolutely delighted with the impact this product has had – with our valued broker partners sharing many stories of the difference it has made to their clients’ lives by making their homeownership aspirations achievable sooner,” said Jeremy Duncombe (pictured), managing director of Accord Mortgages.

“We’re delighted to be able to now extend its availability to people purchasing flats too, given our analysis since launch suggests this change will be particularly beneficial to people in city centre in areas like London, the South-East and parts of Scotland, where property prices tend to be higher and flats are therefore a popular choice.”

Accord initially introduced the £5K Deposit Mortgage in response to affordability challenges for first-time buyers. The lender’s research indicated that accumulating a 10% deposit — typically around £20,000 for a £200,000 property — was a major barrier to homeownership.

Yorkshire Building Society’s 2023 Home Truths Report found that 78% of first-time buyers believe homeownership is becoming an “elite privilege.” Further research in 2024 revealed that 59% of prospective buyers risk giving up on homeownership due to financial concerns and market complexity. Long-term renters, the mutual noted, could be £2.6 million worse off over their lifetime.

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