Can I get a 1 percent mortgage?

After the government’s rumoured plan failed to launch, a few lenders decided to introduce the infamous 1% mortgage just in time for summer. If you’re a first-time buyer struggling to join the UK property market, then the 1% mortgage creates the perfect solution to finally own a home.

How much can you borrow with a 1 percent mortgage?

This fee-free mortgage allows buyers to borrow up to 99% of their desired property, up to £500,000. This allows for a level playing field when attempting to join the market. To be able to have access to the 1% mortgage, there are certain eligibility criteria that need to be met.

Who can access the 1 percent mortgage?

This mortgage requires at least one first-time buyer and cannot be used on new-build properties or flats. The maximum age at the end of the mortgage term needs to be 70, and you also need to have an enhanced credit score to place confidence in the lender for sufficient repayments.

A minimum £5000 deposit is required

Although promoted as a 1% mortgage, a £5,000 deposit is required. Whether your house is worth £100k or £500k, you must put down £5,000. A £5,000 deposit on a £100k property gives you 5% equity. This has been put in place to ensure borrowers don’t fall into negative equity.