Accord Mortgages has extended the availability of its £5k Deposit Mortgage to include flats.
The product was launched by Accord Mortgages last year, allowing borrowers to purchase a property worth up to £500,000 with just a deposit of £5,000.
The lender has also reduced the rate of the product from 5.74% to 5.69%.
The rest of the product’s criteria remain the same; it is still available to first-time buyers only, it is available on a capital and interest basis, and the maximum age of borrowers at the end of the mortgage term must be 70.
The product is available on non-new-build residential house and flat purchases.
The £5k Deposit Mortgage was launched following feedback from brokers, and Accord Mortgages said hundreds of people had benefitted from it so far and it had seen a “steady stream of interest”.

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Jeremy Duncombe, managing director of Accord Mortgages, said: “We’re absolutely delighted with the impact this product has had – with our valued broker partners sharing many stories of the difference it has made to their clients’ lives by making their homeownership aspirations achievable sooner.
“We’re delighted to be able to now extend its availability to people purchasing flats too, given our analysis since launch suggests this change will be particularly beneficial to people in city centre in areas like London, the South East and parts of Scotland, where property prices tend to be higher and flats are therefore a popular choice.”