Yorkshire Building Society Launches £5,000 Deposit Mortgage for First-time Buyers

The innovative mortgage scheme aims to make homeownership more accessible, though it comes with restrictions and a higher interest rate.

Yorkshire Building Society's new mortgage allows first-time buyers to purchase homes up to £500,000 with just a £5,000 deposit.
The mortgage is not available for new-build properties or flats, and applicants must pass strict affordability and credit scoring checks.
Brokers warn that the scheme's high five-year fixed interest rate of 5.99% could make it less attractive compared to other deals on the market.
The Bank of England's anticipated base rate cut could mean borrowers paying higher interest for longer than necessary.
Experts suggest the scheme could benefit high earners with good credit scores who struggle to save a deposit due to high rents or other financial commitments.