A RAPIDLY increasing number of mortgage lenders are launching mortgage products that require just a 10 per cent deposit this month, which is making it much easier for people with smaller deposits to start climbing the property ladder, according to agents Dacre, Son & Hartley.

The company’s mortgage services partner, Mortgage Advice Bureau (MAB)’, lists the main lenders offering products that require a 10 per cent deposit.

These now include HSBC, Bank of Ireland, Coventry Building Society, TSB, The Post Office, Nationwide, Natwest, Barclays, Digital Mortgages, Halifax, Accord Mortgages, Cambridge Building Society, Aldermore Mortgages, Platform, Virgin Money, Metro Bank and Saffron Building Society.

Patrick McCutcheon, head of residential at Dacre, Son & Hartley, which has 20 offices in West and North Yorkshire, said: “This influx of new mortgage products, from a wide range of well-known lenders, that require only a 10 per cent deposit, significantly improves liquidity in the property market.

“It shows lenders are confident that prices will hold firm and it is a great opportunity for first time buyers and those with smaller deposits, or low equity in their current property, to buy homes, especially when this is combined with record low interest rates.”

Michelle Brook, managing director of Brook Financial Services, which trades as Mortgage Advice Bureau in Barnsley, said: “The reason around 90 per cent mortgages being offered by a limited number of lenders is due to the capability of being able to handle them from a resource point of view. The more lenders that enter the market at 90 per cent, the lower the risk.

“Most of these products are available for home purchases, first-time buyers and to those remortgaging, up to a maximum of 35 years, and for lots of first-time buyers, these products allow people to get on the housing ladder who previously would not have been able to, so it is very welcome news for many people.”