The availability of low deposit mortgages has risen to its highest level in almost five years, research from Moneyfacts has revealed.
Moneyfacts UK Mortgage Trends Treasury report found the availability of deals at the 95 per cent loan-to-value tier rose to 388 this month, the highest point since March 2020 when it stood at 391.
Moneyfacts finance expert, Rachel Springall, said: “Borrowers with a limited deposit may find it encouraging to see a growth in choice for mortgages available at 95 per cent LTV.
“This is positive to see, but there is still lots of room for more deals to be pushed out in this area of the market as it represents just 6 per cent of all deals available to borrowers across fixed and variable mortgages.”
Despite rising choice, Springall pointed out average rates across a two or five-year fixed deals at 95 per cent LTV are higher than at the start of 2025.
The research found rates for this higher LTV stood at 5.94 per cent and 5.72 per cent for the average two-year and five-year fixed rate respectively.
This represented a rise from the 5.86 per cent that was recorded for the average two-year rate and the 5.47 per cent for the average five-year rate for January for the higher LTV rate.
Similarly, the research reported that the average two-year and five-year fixed rate rose across all LTVs in February, rising from 5.48 per cent to 5.52 per cent and from 5.25 per cent to 5.32 per cent respectively.
Moneyfacts also provided insight into the shelf life of mortgage products, reporting that it rose to 36 days in February.
This represents a rise from the 21 days that was recorded in January 2025 and the 28 days that was recorded in February 2024.
tom.dunstan@ft.com
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