Lloyds Banking Group is lowering the hurdle First Time Buyers commonly say stops them getting on the housing ladder – getting a deposit together.
From 18th May, first time buyers with Lloyds, Halifax and Bank of Scotland could be on the way to getting the keys to their home with just a £5,000 deposit.
According to the most recent figures published by UK Finance (May 2025), the average first time buyer household - that isn’t getting help with a deposit - had an income of £65,351 and bought a home worth £279,381.
Based on a 5% minimum, that means they need to save around £14,000 for a deposit, before any other cost like legal fees or furniture, fixtures and fittings.
Around the country, first time buyers looking at homes price below, at and even above average purchase prices, could see their required deposit fall considerably compared to a 5% deposit. In 2025, an estimated 270,000 first homes worth £300,000 or less were bought with a mortgage.
In fact, any home with a price between £100,000 and £300,000 would have a lower deposit requirement than for a 95% mortgage.
Amanda Bryden, head of Halifax Intermediaries and Scottish Widows Bank, said:
“We regularly get feedback from brokers that first time buyers find getting a deposit together one of the main barriers to them buying a home and today we are taking another step to help them get past that.
“We recognise our responsibilities as a lender to ensure loans are affordable - not just now, but in the future for all our borrowers. With this new offer, brokers have a new option for buyers who have shown their ability to manage their finances, save for a deposit themselves and who are taking the greater certainty of a longer-term fixed rate.
“A lower deposit can make it easier to save for a deposit for many, or it can help free up cash for other costs, like conveyancing or setting up your new home the way you want it.”
