Borrowers can buy a property worth up to £500,000 with a deposit of just £5,000 (Image: Getty)
Yorkshire Building Society is extending its £5k Deposit Mortgage to purchasing flats and is reducing the from 5.74% to 5.69%.
Homebuyers can take out the directly from YBS or through its intermediary lending arm, Accord Mortgages, by speaking to a broker.
YBS said demand had led it to extend eligibility, allowing borrowers to buy a property worth up to £500,000 with a deposit of just £5,000.
It launched the £5k Deposit after research found the typical 10% deposit on the average first-time buyer home worth £200,000 was the barrier to home ownership.
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Ben Merritt, director of mortgages at YBS, said: “We’re absolutely delighted with the impact this product has had – our teams have been overwhelmed by the very human stories illustrating the difference it has made to people’s life plans. In fact, it has reminded us of why we exist, and the fact a house is so much more than just bricks and mortar.
“Expanding its reach to include flat purchases is the natural next step and we’re really pleased to be able to respond to feedback by offering this additional opportunity for would-be first-time buyers to benefit.
“Our analysis suggests this change will particularly benefit people in city centre locations 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.”
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£5k Deposit product details at a glance:
- Five-year fixed-rate at 5.69% (was 5.74%)
- Available to first-time buyers only
- Available on a capital-and-interest basis only
- Maximum age at end of term 70
- Available for non-newbuild residential house and flat purchases.
Nicholas Mendes, technical manager at John Charcol said: “The recent decision to include flats makes perfect sense, especially in cities like London, the South-East, and parts of Scotland where flats are often the most realistic option due to higher property prices. This move will undoubtedly open up more opportunities for buyers in urban areas.
“This type of product is likely to benefit higher earners with good credit histories who simply haven’t been able to build up a deposit because of the . That said, it’s always worth looking at other options in the market. Products like Skipton’s Track Record , Barclays’ Springboard, and the Own New proposition also support first-time buyers, often with different criteria that might suit individual circumstances. However, YBS’s stands out for its simplicity and the real difference it’s already making to people trying to get onto the property ladder.