Low-deposit mortgage lending has reportedly risen 38% to £24.7bn, with the share of lending at 90% loan-to-value and above at its highest level since 2008. Separately, the government is reported to be preparing a proposed Your First Home initiative, using a 20% government-backed equity loan that could allow qualifying first-time buyers to proceed with a 2.5% deposit.
Demand conditions remain challenging: cost-of-living pressures are affecting aspiring buyers, including 54% of Scottish adults aged 18 to 34 in Pepper Money research, while first-time-buyer demand reportedly softened in Q3. Advisers should model the full affordability picture—not just deposit size—including higher-LTV pricing, future equity-loan obligations, new-build availability and property costs. AI tools can improve scenario modelling and document collection, but inputs, assumptions and consumer explanations need careful review.