Hope For First-Time Buyers As Number Of Deals Rises | moneyfacts.co.uk

Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from news@moneyfacts-news.co.uk. Be Scamsmart.

ARCHIVED ARTICLE This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Derin Clark

Derin Clark

Online Reporter
Published: 30/11/2020

The number of mortgage deals available for those with a 10% deposit has increased by 25 during November and is now at its highest level since the 1 June 2020.

Today there are 81 mortgage deals available at a 90% loan-to-value (LTV) – a LTV that requires a 10% deposit to apply for and is usually aimed at first-time buyers. This is an increase of 25 deals since the 1 November 2020, when the number of 90% LTV deals stood at 56. As well as this, as the below table shows, since the 1 October 2020 the number of 90% LTV deals has steadily increased and now stands at its highest level since 1 June, when there were 183 deals available.


Number of 90% LTV deals available
Date Product number
1 March 2020 779
1 April 2020 326
1 May 2020 100
1 June 2020 183
1 July 2020 70
1 August 2020 68
1 September 2020 62
1 October 2020 51
1 November 2020 56
30 November 2020 81


While the number of 90% LTV deals available is rising, those looking to buy a property with a 10% deposit should still be aware that the market is still challenging and there are currently 698 fewer 90% LTV deals available in the market today than there were on the 1 March 2020. As such, first-time buyers looking to buy a property with a 10% deposit should consider speaking to a mortgage broker, who will be able to assess all the 90% LTV deals in the market to help decide the best deal for the borrower’s circumstances.

Average 90% LTV rates fall during November

In addition to the number of 90% LTV products rising, November has seen average rates on two and five year fixed deals at a 90% LTV fall. On the 1 November 2020, the average 90% LTV on a two year fixed deal stood at 3.76%, which has since fallen by 0.08% during the month to stand at 3.68% today. Meanwhile, the average five year fixed rate on a 90% LTV deal was 3.98% on 1 November 2020, which has decreased by 0.16% to stand at 3.82% today.

Buyers with a 5% deposit face highly challenging market

Although buyers with a 10% deposit will have seen their choice of deals increase during November, those with a 5% deposit now have fewer deals to choose from. On the 1 November 2020, there were 12 deals available at 95% LTV, which requires a 5% deposit, this fell to just eight available on the 30 November 2020. In fact, the number of deals available at a 95% LTV have consistently fallen or remained the same month-on-month since 1 August 2020, which could signal that lenders are nervous that house prices will fall next year and are therefore reluctant to lend to those with a small deposit.

As first-time buyers looking to get onto the property ladder with a 5% deposit have so few deals to choose from, they may want to consider waiting to increase their savings so that they can offer a 10% deposit on a property. Alternatively, first-time buyers can consider using the Government’s help-to-buy equity loan scheme to boost their deposit.

What first-time buyer mortgage deals are available today?

To see what mortgage deals are currently available at a 90% and 95% LTV, take a look at our first-time buyer mortgage chart.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

mortgage documents with keys


Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy