5K Deposit Mortgages: Eligibility, Limitations, and How to apply online?

Recently, the Yorkshire Building Society has announced exciting news for first-time house buyers. The Society revealed they will launch a £5000 deposit mortgage to first-time home buyers. Read the article to learn about this exciting scheme of the Yorkshire Building Society. 

5K Deposit Mortgages

The third largest building Society in the United Kingdom has revealed that they will provide 5k deposit mortgages to aspiring home buyers to let borrowers secure their houses faster than before.  

According to the announcement, the Yorkshire Building Society has revealed the 5k amount after heavy research. The amount of £5000 is an essential amount that will allow aspiring homeowners to enter into the housing market of the UK. 

The Society reveals that the mortgage is valid up to £500,000 property value and it is available to first-time buyers from 27 March 2024. The mortgage will allow buyers to bag the deal of a housing loan for five years at a fixed rate of 5.99%.  The 5k deposit mortgage deal comes with some restrictions and eligibility that we will discuss further in the article. 

The deal will help buyers cover their house loans with their household and daily expenses. The Yorkshire director believed that this deal would help people who don’t have any financial support from their families to acquire property of their own. 

The Yorkshire Mortgage Director, Ben Merritt, also says that the deposit of £5000 would bring a massive difference to first-time homeowners as it reduces the time to save up the initial cost to buy a home and get its complete ownership from 7.5 years to 2.5 years. 

Eligibility of the new 5K Deposit Mortgages

The people who wish to take benefit of this scheme introduced by the Yorkshire Building Society need to meet the following eligibility criteria:

  • The applicant’s age at the end of the mortgage term should be 70 years. 
  • The deal is available for first-time buyers from England, Wales, and Scotland.
  • It should be their first property and they should have no background of any properties in their name. 
  • The 5k deposit mortgage is available for Loan to Values between 95% and 99%. 
  • The applicants must have achieved high credit scores to show their credibility. 
  • The applicants must have a deposit of £5000 at least to take the fixed rate five-year mortgage. 
  • The deal is available for house purchases of over £100,000 to £500,000. 
  • The applicants can only apply for the 5k deposit mortgage to acquire new houses from the new house business market only. 
  • The applicant can borrow relative to his income with a Loan-to-income ratio of 4.49.
  • The applicant must have a loan value starting from £95k to a maximum of £495k.

Remember, your credit score and affordability assessment will make you eligible for the 5k deposit mortgage from the Yorkshire Building Society, UK.  

Limitations of 5k Deposit Mortgages

There are the following exceptions in the 5k deposit mortgage deal of Yorkshire Building Society: 

  • The 5k deposit mortgage deal is excluded from the purchase of flats, properties, and new builds in Northern Ireland. 
  • The applicant who hasn’t received the permanent right to reside in the UK cannot apply for the 5k Deposit. 
  • The 5k Deposit is unavailable for property purchase in conjunction agreement with the Joint Borrower Sole Proprietor, Boost LTI services, or Cascade score.  

How to apply for the 5k deposit mortgages?

The applicants can apply for the 5k deposit mortgage in the same way they apply for any other mortgage program in the UK. 

First-time home buyers can avail of this benefit directly or through their brokers via Accord Mortgages. Accord Mortgages is the intermediary arm that connects customers with the Yorkshire Building Society. 

When you find yourself eligible and meet all the requirements of the 5k deposit mortgage mentioned above follow the below steps to secure the deal:

  • Get an agreement in principle (AIP)  from a mortgage lender. 
  •  And the rest of the process of the 5k deposit mortgage will be taken care of by the Accord Mortgage Sales & Origination (MSO). 
  • You will receive the final mortgage offer within four weeks or more of your application. 

Remember, your paperwork to acquire the mortgage is complete to secure the mortgage smoothly. 

People who have an interest in buying their first-ever property in the UK can utilize this ongoing 5k deposit mortgage deal of Yorkshire Building Society. It will be interesting to see if other lenders will follow the steps of the Yorkshire Building Society as we see many offers for first-time buyers. 

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