A new era for first-time buyers? – Bamford

That sort of criticism can’t, however, be aimed at most building societies. Mutuals are increasingly cutting rates, regulatory reform is gaining traction, and – across the board – the range of high and even 100% loan-to-value (LTV) mortgage products is the most expansive we’ve seen in years. For advisers, this isn’t just a welcome market development, it’s a client engagement opportunity. 

Recent research from Moneyfacts highlights that mutuals are leading the charge in supporting first-time buyers through competitive pricing, especially in higher LTV bands. Five of the six lowest priced two-year fixed deals at 95% LTV are now from building societies. That’s a clear signal that the market is shifting in the right direction – not only toward greater affordability, but also toward flexibility in underwriting.

And this matters. Because while we’ve seen some softening in rates, affordability challenges remain stubbornly high, particularly for younger renters.

The Building Societies Association’s (BSA’s) recent Missing Millions report reminds us that the average private renter has less than £3,000 in savings – hardly sufficient for even a modest deposit and associated costs. 

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100% LTV mortgages are welcome 

It’s why we must view the rise in 100% LTV products as a positive development, even if there is always likely to be some legacy criticism attached to them.

Today’s versions, however, are responsibly structured, tightly underwritten, and typically limited to clients with strong rental histories and clean credit records. They allow lenders to say yes more often, and they may also allow advisers to reopen conversations with clients who might previously have been ruled out.

They also enable more tailored support for those with reliable affordability but no access to parental wealth or significant savings. When done right, 100% LTV lending is a real gateway, not a red flag. 

And yet, outside of the professional advisory space, misinformation persists. I saw a recent LinkedIn post that confidently asserted that 100% LTV mortgages all come with 10- or 15-year fixed terms and to be wary of them because of this.

That simply isn’t true, as we know. Only two products currently on the market have those term lengths. The rest are far more flexible, including shorter-term, five-year fixes and discounted variable rates. But for a first-time buyer scrolling that feed, perhaps already wary of high rates and long commitments, that post could be enough to turn them off the idea entirely. Worse still, it might dissuade them from even speaking to an adviser. 

Clearing the mist with good mortgage advice 

This is where the value of advice is clearest. In a market where complexity and misinformation are often only a click away, advisers are the front line of clarity. They correct myths, frame the true pros and cons of products, and – crucially – help clients arrive at better financial outcomes.

This is also why the FCA’s approach under CP25/11 warrants fresh scrutiny. By appearing to tip the balance further toward execution-only options, it risks sidelining the very professionals best equipped to support consumers through an increasingly nuanced market. If we want more borrowers to make better decisions, we need to make it easier – not harder – for them to access good advice. 

All of this reinforces why advisers should feel confident highlighting that 100% LTV products exist, and that for the right borrower, they are entirely viable. They also offer a perfect opportunity to start wider conversations: “Could you raise 5% with a gift from family? Would a bit more time give you access to even better terms?” Small deposits can make a big difference, and advisers are uniquely positioned to help clients weigh those trade-offs. 

Private mortgage insurance has helped underpin this shift. While advisers don’t interact with it directly, it has enabled more lenders to operate confidently in the high-LTV space. It supports the safety and sustainability of these products behind the scenes, giving lenders the assurance they need to lend at or near 100% with appropriate protections in place.

We are already involved with the provision of such products with lenders and are having further conversations with others, and I can confidently predict that more lenders will enter this product space.

Overall, this is a market in motion. Lenders are more engaged, regulation is evolving, and demand from would-be buyers remains high. For advisers, the ability to help more clients take that first step onto the ladder is back. And this time, they don’t all need to start with a deposit. In a landscape of cautious optimism and expanding opportunity, 100% LTV products can be a very strong starting point indeed.