First time buyers: 10% deposit mortgages are still available

Published on 8 October 2020

If you’re a first time buyer you could still get onto the property ladder with a 10 per cent deposit with The Cumberland.

You might have heard that mortgages with low deposits are no longer available, but that’s not the case for our customers.

The buoyant housing market has led to a shortage of low deposit mortgages nationally among high street lenders. It was an issue highlighted by Boris Johnson this week as he announced plans to help ‘Generation Rent’ become homeowners.

The Prime Minister promised action to help young people get on the property ladder by ensuring they had access to low deposit mortgages, adding that he wanted to help create two million new homeowners.

Still offering 10% deposit mortgages
We agree that first time buyers need low deposit mortgages. We are one of the few banks and building societies that requires a deposit of just 10 per cent for mortgages.

So that means if you are in reach of a Cumberland branch in Cumbria, Lancashire or south west Scotland you can get a 90 per cent mortgage - with 85 per cent mortgages available if you live outside our operating area.

Such low deposits are helping first time buyers get on the property ladder and are also proving useful to the many homeowners who are looking to move into higher value homes to get more space for their family or working from home.

Hundreds on the property ladder since lockdown
Lewis Benson, area manager at The Cumberland, is pleased that his team have helped hundreds of first time buyers since the easing of the lockdown, but was concerned that many people wrongly believed that low deposit mortgages weren’t available.

Reports in the national media regularly repeat the myth that low deposit mortgages are no long available. Most lenders have dropped them because the housing market has bounced back, but the Cumberland is proud to still have them available.

“Boris is right that first time buyers need low deposits and we’ve been fortunate as a business to be able to provide people with 90 per cent mortgages which means they only needed a 10 per cent deposit.

“In some Cumbrian towns, particularly in the west and north of the county, £100,000 will buy you a really decent property so a £10,000 deposit does feel like something that is achievable to a lot more people - particularly if they get help from parents or grandparents,” he said.

Don't wait weeks for an appointment
Some first time-buyers that they have been forced to wait weeks for mortgage appointments, but The Cumberland has been able to maintain a quick turnaround through its local teams.

Mr Benson said: “We’ve had a number of first time buyers coming to us because they have been told elsewhere that they will have to wait up to six weeks which is a long time when the market is moving fast.

“We’ve also had a lot of homeowners starting to feel like they want to move quickly to take advantage of the stamp duty holiday which is due to end in March. The 90 per cent mortgage works in their favour too if they are looking to move to a higher value property.

“So it’s important that we can arrange appointments quickly and make sure it's with somebody who can guide them through the whole process rather than just hand them a form. Properties are going quickly and we are still finding that sellers might prefer first time buyers as they are not in a chain. They are seen as less of a risk and if they have a mortgage secured can often move very quickly.”

  • As part of its commitment to helping people get onto the property ladder, The Cumberland is inviting first time buyers to submit questions to a panel of industry experts this month. You can submit your question by visiting The Cumberland’s Facebook page.
  • To find out more about getting onto the property ladder with a 10 per cent deposit, call The Cumberland on 01228 403141. Our expert mortgage advisers are available seven days a week with evening appointments available too.