image showing summarised features of 99% mortgages

Breaking Barriers – Introducing 99% Mortgages in the UK

As of today it has been announced the introduction of 99% mortgages, offering aspiring homeowners a new avenue to fulfill their dreams of owning property. As a result, this innovative scheme promises to address one of the most significant barriers to home ownership—the hefty deposit requirement—and pave the way for a more inclusive and accessible housing market. Let’s delve into the key features of 99% mortgages and explore how it reshapes the landscape of home ownership in the UK.

Who are 99% Mortgages aimed at

First Time Buyers

Those who have never owned a property in the UK are eligible. Furthermore, if you are purchasing in joint names, only one of the applicants needs to meet the first time buyer definition, for instance. To clarify, neither party can currently own any background properties.


Those who have managed to build up a minimum deposit of £5,000 can apply to use the scheme. This amount can continue to be saved up to the point of completion. To clarify, applicants can use more deposit if it fits within the key criteria.

UK Residents

Applicants must have permanent right to reside in the UK.

Good Credit Profiles

Applying for a mortgage above 95% requires suitable applicants to pass credit checks to be considered for use of the scheme.

Key Features of 99% Mortgages

  • Minimum Deposit of £5,000
  • Loan to Value just above 95% up to 99%
  • Minimum loan amount £95,000
  • Minimum property value £100,000
  • Maximum purchase price £500,000
  • 5 year fixed rates only
  • Maximum age 70 at the end of the mortgage term
  • Excludes purchase of new build homes, flats and property in Northern Ireland

***All applications are subject to affordability checks, credit scoring and standard criteria eligibility.***

***Consider your financial obligations outside of your deposit. Most importantly consider solicitor fees and stamp duty costs***

The Likely Impact of 99% Mortgages on the UK Housing Market

The introduction of 99% mortgages is poised to have a transformative impact on the UK housing market. As a result of lowering the barrier to entry and expanding access to home ownership, this innovative scheme has the potential to:

  • Stimulate housing demand and market activity, driving growth and revitalization in the housing market
  • Empower first-time buyers to purchase their dream home without an excessive deposit. Furthermore, the lower deposit requirement is far more achievable for potential homeowners
  • Encourage other lenders to follow suit with similar schemes or more innovative ideas aimed at encouraging people onto the property ladder


To sum up, 99% mortgages represents a paradigm shift in the UK housing market, offering a lifeline to those who have long struggled to make their homeownership dreams a reality. Furthermore, this innovative scheme has the power to transform first time buyers dreams across the country. In short, Aspiring homeowners can explore the possibilities offered by this initiative and take the first steps towards achieving their dreams of owning a home.