Accord Mortgages has extended its £5,000 Deposit Mortgage to include flats, in response to broker feedback.
The decision, which aims to support more first-time buyers, also comes with a slight rate reduction from 5.74% to 5.69%.
The intermediary-only arm of Yorkshire Building Society initially launched the £5,000 Deposit Mortgage in March last year. The product allows borrowers to purchase homes worth up to £500,000 with just £5,000 down.
Jeremy Duncombe, managing director of Accord Mortgages, said: “We’re absolutely delighted with the difference this product has made. Our broker partners have shared numerous stories of how it has helped clients achieve homeownership far sooner than they expected.”
By expanding the eligibility criteria to include flats, Accord aims to provide further support to first-time buyers, particularly in high-priced urban areas such as London, the South-East, and parts of Scotland.
“Our analysis suggests this change will be particularly beneficial in city centres, where flats are often the preferred and more accessible choice for buyers,” Duncombe added.
The £5,000 Deposit Mortgage was initially developed after Accord identified the biggest barrier to homeownership: the challenge of raising a typical 10% deposit.
