The percentage of borrowers securing deals at 95% loan-to-value has increased by 61% from 2024 to the start of this year, new analysis by Mojo suggests.
In 2024, it says that 7.7% of its customers secured a mortgage at 95% LTV or higher, while in 2025 this climbed to 10.8%.
So far this year, the mortgage broker has found that 12.2% of its clients are now securing deals at 95% LTV and above.
The increase in approvals for low-deposit mortgages follows regulatory changes that have made it easier for more lenders to offer high LTV deals.
Mojo has welcomed the launch of Santander’s 98% LTV product and updated its own maximum LTV thresholds to enable clients to apply for this deal.
Mojo Mortgages head of mortgages John Fraser-Tucker says: “This isn’t just another product, it’s a direct challenge to the rent trap that has stifled a generation of aspiring homeowners.
“As the cost-of-living crisis continues to squeeze monthly disposable income, saving for a traditional 10% or 15% deposit has become increasingly unattainable for many.”
He says the new 98% LTV option is particularly significant for buyers without access to family support.
Fraser-Tucker says: “For years, the market has trended toward a two-tier system.
“On one side, you have buyers supported by the Bank of Family who can access lower rates through larger deposits.
“On the other, you have solo savers who, despite having strong salaries and impeccable credit, find themselves running a race where the finish line moves faster than they can save.
“By lowering the barrier to a minimum £10,000 deposit, this 98% offering allows buyers to pivot from paying a landlord’s mortgage to building their own equity years earlier than previously possible.”
However, Fraser-Tucker says affordability remains a constraint.
He says “While the 2% deposit is the headline, the real story for 2026 is affordability.
“Santander’s cap of 4.45 times salary reminds us that while lenders are becoming more flexible on entry costs, they remain disciplined on ongoing sustainability.”
But he remains hopeful that Santander’s move will set off a ripple effect and prompt other lenders to follow suit, bringing more choice for first-time buyers.
