Loans available for all property types, including flats and apartments
Mortgage and protection brokerage Access Financial Services (Access FS) has announced that it has secured exclusive distribution rights for a new UK lender offering zero-deposit mortgages.
The lender, launching this month, will introduce its first range of zero-deposit mortgage products exclusively through Access FS. These mortgages will be available to all home movers purchasing a primary residence, including visa holders, and will initially include a five-year fixed-rate option.
The product is designed for professionals earning at least £30,000 per year who can afford mortgage repayments but have struggled to save for a deposit. Unlike some low-deposit mortgage options, these loans will be available for all property types, including flats and apartments.
While not restricted to first-time buyers, the mortgage aims to help those struggling with the deposit hurdle. High rental costs continue to impact affordability, with private renters in 2023 spending an average of 32% of their income on rent, compared to 18% for homeowners with a mortgage, according to the Statista Research Department.
The product may also benefit buyers who do not have financial support from family members. With the so-called Bank of Mum and Dad playing a smaller role due to rising financial pressures, this mortgage could provide an alternative path to homeownership.
Key workers are among the target borrowers, with lending available at up to 5.5 times their income. Access FS anticipates strong demand for the product and expects it to contribute to its goal of reaching £15 billion in mortgage lending by 2027.
“The launch of these mortgages will help solve a very real need that people face when trying to buy their first home,” said Karl Wilkinson (pictured), chief executive of Access Financial Services. “We can now provide a solution for professional people trying to get on the housing ladder without the need for help from increasingly hard-pressed family members.”
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