Home-Buyers Get a Lift as Low-Deposit Mortgage Rates Fall to Three-Year Low

- Wed 12 Nov 2025

Buyers working with smaller deposits are receiving a welcome boost as mortgage rates for high-loan-to-value (LTV) products have fallen to their lowest level in three years. Lenders are increasingly offering competitive deals for borrowers with 90% or even 95% loans required, reflecting growing confidence in the UK housing market and a willingness to accommodate buyers who lack large deposits.

According to market data, the average fixed-rate mortgage for buyers putting down just 5%–10% of a property’s value has declined significantly compared to recent years. This is chiefly driven by lenders keen to tap into the first‐time buyer and low-deposit segments, and by broader stabilisation in interest-rate pressures and lending appetite.

David Lewis, Head of Mortgages at Bradleys Financial Management, says: “With rates for high loans to value deals (small deposits) reaching their lowest point in three years, we’re seeing a window of opportunity open for buyers who thought they might have to wait longer. Getting into the market now could make all the difference.”

That being said, Lewis cautions that while the headline figures are encouraging, borrowers must still meet affordability criteria and be realistic about the full cost of home-ownership: “Even when the rate looks tempting, it’s vital to consider the long-term commitment, additional costs and how you would cope if circumstances change.”

Lenders are also reacting to improved market conditions. Reduced base-rate expectations, greater competition and a retreat from the more extreme risk-aversion seen in previous years are all contributing to the softer pricing. As a result, products with 90% LTV or higher are becoming more available — a significant shift for buyers who have often been locked out unless they had large deposits.

For many aspiring buyers, this softer rate environment offers a chance to act rather than wait. If this is something either you or someone you know is considering, then contact David and the team of Mortgage Experts at Bradleys Financial management on 01395 222391 for a free no obligation chat to explore your options, you might well be surprised. Alternatively, you can contact your local Bradleys office who can put you in contact with one of the experts.

Home-Buyers Get a Lift as Low-Deposit Mortgage Rates Fall to Three-Year Low

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