Low-Deposit Mortgage Lending Hits 18-Year High

Low-deposit mortgage lending has surged to an 18-year high in the UK. According to new figures from the Bank of England, 8.4% of gross mortgage advances were above 90% loan-to-value (LTV) in the second quarter of 2026.

This marks a significant increase from the previous quarter and represents the highest proportion since the second quarter of 2008.

Finance expert Rachel Springall notes that saving a large deposit is a daunting task for many borrowers, making low-deposit borrowing essential. She emphasizes the importance of lenders adjusting affordability criteria fairly and creating innovative products to help borrowers.

However, Springall also warns about the dangers of negative equity if house prices plummet, advising borrowers to seek good advice and make efforts to overpay their mortgage.