Overview

• The First Step mortgage offers up to £350,000 with a minimum deposit of £5,000 or 2% and fixes the rate at 5.25% for five years with terms up to 35 years.
• Deposits must come solely from the buyer’s own savings, with any gifts or loans from third parties leading to rejection, a policy brokers describe as highly unusual.
• Newcastle says the product is intended for buyers who have saved their deposits, while other society deals still accept gifted funds but require larger deposits.
• Savills and UK Finance report that about half of first-time buyers received family support last year and that assisted buyers typically put down much larger deposits.
• Rival low-deposit choices persist, including 5% deals at lower rates and some no-deposit products that carry tighter eligibility rules and higher pricing.