Accord Mortgages extends popular and unique £5K mortgage offering to flats - And reduces rate to 5.69% (was 5.74%)
05 February 2025
Accord’s groundbreaking £5k Deposit Mortgage will be available to those purchasing a flat from today.
Accord, the intermediary-only arm of Yorkshire Building Society, is enhancing the eligibility criteria for the mortgage - which allows borrowers to buy a property worth up to £500,000 with a deposit of just £5,000 - in direct response to feedback from brokers.
All of the product’s other terms and conditions remain the same.
Accord launched its original £5k Deposit Mortgage last March to an overwhelmingly positive broker response. Although the lender did not anticipate the product being right for all first-time buyer circumstances, it has seen a steady stream of interest since launch, with hundreds of people benefitting so far.
Jeremy Duncombe, managing director of Accord Mortgages, said:
“We’re absolutely delighted with the impact this product has had – with our valued broker partners sharing many stories of the difference it has made to their clients’ lives by making their homeownership aspirations achievable sooner.
“We’re delighted to be able to now extend its availability to people purchasing flats too, given our analysis since launch suggests this change will be particularly beneficial to people in city centre 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.”
Accord decided to launch its first-of-its kind £5k Deposit Mortgage after its analysis showed that raising the typical 10% deposit on the average first-time buyer home worth £200,000*, was the biggest blocker to homeownership given today’s historically high house prices.
This latest enhancement underlines its commitment to helping first-time buyers, after research compiled by ‘parent business’ Yorkshire Building Society for its 2023 Home Truths Report in 2023 showed that 78% of people in this category feel homeownership is becoming an elite privilege.
Further research in 2024 demonstrated that two-fifths (59%) are at risk of giving up on the idea of homeownership altogether due to worries about the financial commitment a house represents and the high cost of living (41%), and feeling overwhelmed by the complexity of navigating the current market. The Society also revealed analysis which shows those forced to rent for life could result in them being £2.6 million worse off.
£5k Deposit Mortgage product details at a glance:
- Five-year fixed rate mortgage 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 mortgage term 70
- Available for non-newbuild residential house and flat purchases
