The number of mortgage products allowing borrowers to secure 95% loan-to-value deals has reached its highest level since March 2008, according to data from financial information provider Moneyfacts.
At the start of February 2025, 537 mortgage deals were available at 95% LTV, nearly double the 274 products available in February 2024. The expansion reflects a broader trend of lenders adjusting affordability criteria and introducing higher loan-to-value products.
Current mortgage rates and market conditions
Two-year fixed-rate mortgages at 95% LTV currently start at approximately 4.47%, whilst five-year fixed-rate products begin at around 4.53%. For borrowers able to provide a 10% deposit, the market offers 981 products at 90% LTV as of early February, according to Moneyfacts data.
Rachel Springall at Moneyfacts stated: “This year is setting itself up to be a fruitful one for first-time buyers, and really, they need all the help they can get amid the lack of affordable housing.”
Lenders expand high LTV offerings
Several lenders have introduced products exceeding the traditional 95% threshold. Santander launched a 98% LTV mortgage requiring a minimum £10,000 deposit, whilst Skipton and Yorkshire building societies offer products at 100% and 99% LTV respectively. These products typically include specific eligibility criteria and property restrictions.
Awareness gap among potential buyers
Research published by the Building Societies Association (BSA) found that 47% of aspiring homeowners had never consulted a lender or mortgage broker to assess available options. Among those who had sought advice, 46% had not done so within the past year.
When presented with information about low-deposit and zero-deposit products from building societies, two-thirds of respondents indicated they could purchase property sooner than previously anticipated. The BSA described this as “a clear gap between perception and reality” in the mortgage market.
The expansion in high LTV products comes as deposit accumulation remains a primary obstacle for prospective buyers, with rent and living costs consuming significant portions of monthly income for many households.
