The value of new mortgages requiring deposits of less than 10% increased by 38% to £24.7bn in the year to June 2026, as lenders expanded options for buyers struggling to build larger deposits.

Analysis of FCA Mortgage Lending Statistics by TWM Solicitors found lending at above 90% loan-to-value (LTV) rose from £17.9bn the previous year.

Julian Sampson, Partner and Head of Lending at TWM Solicitors, said: “After several years in which higher interest rates and rising living costs made it increasingly difficult for first-time buyers to save a meaningful deposit, we're now seeing lenders respond with a much broader range of low-deposit products.”

Growth was particularly strong at the highest LTV levels. New mortgages requiring deposits of less than 5% more than doubled in value from £720m to £1.5bn.

Despite the increase, low-deposit lending remains below levels seen before the Global Financial Crisis. Mortgages at 90% LTV or above accounted for 8.4% of new lending compared with 15% in the quarter to June 2007.

The market now includes mortgages covering up to 98% of a property’s value, products requiring deposits of just £5,000 and family-backed mortgages. Other schemes target new-build buyers with 5% deposits.