First-time buyers can now get on property ladder with only 1% deposit

First-time buyers can now enter the property market with as little as a 1% deposit, thanks to a new mortgage being released by Yorkshire Building Society (YBS). The five-year fixed-rate deal, with an interest rate of 5.99%, requires only a £5,000 deposit and can be used to purchase properties worth up to £500,000. It cannot be used on newbuilds or flats, and buyers will still have to pass the usual affordability checks. YBS believes this new type of loan will help first-time buyers save years in deposit savings. Previously, banks typically required a 5% deposit to protect against negative equity if house prices fall. 

Daily Express (26/03/2024)   Evening Standard (26/03/2024)   The Independent (26/03/2024)   The Times (26/03/2024)