Seasonal Market Insights - Spring 2025
21 May 2026
For many aspiring homeowners in Horsham, Southwater and the surrounding West Sussex villages, saving for a deposit remains one of the biggest barriers to buying a first home. With rising living costs and house prices continuing to challenge affordability, a newly launched mortgage product aimed at first-time buyers could provide a helpful alternative for those struggling to take their first step onto the property ladder…
The new scheme – offered by Halifax – has been designed specifically for first-time buyers with smaller deposits, offering the opportunity to purchase a home with as little as £5,000 upfront.
For local buyers looking to secure their first property in areas such as Horsham, Southwater, Broadbridge Heath or the surrounding villages, schemes like this may create opportunities that previously felt out of reach.
Why This Matters for First-Time Buyers in West Sussex
Recent figures suggest that around 62% of first-time buyers struggle to meet deposit requirements, with the average time taken to save for a typical 5% deposit now sitting at around five years [Clive Moreton, BDM Lloyds Banking Group]. Unsurprisingly, many buyers continue to rely on financial support from family members to help bridge the gap.
At the same time, the average age of a first-time buyer has risen to 33 years old, highlighting just how difficult entering the market has become for many people across the UK, including buyers across Horsham and Southwater.
With demand for well-presented starter homes remaining strong across West Sussex, reducing the upfront deposit hurdle could help more local buyers move sooner and begin building long-term stability through homeownership.
Key Features of the New Mortgage Product
The scheme is available to qualifying first-time buyers purchasing properties worth between £102,000 and £300,000.
Some of the headline features include:
- A minimum deposit requirement of £5,000 (cannot be gifted)
- Five-year fixed rate mortgage
- Fixed interest rate of 5.89%
- No product fee
- Loan-to-income ratio capped at 4.49
- Note that this is not available for new build properties
Halifax has also simplified the application process by introducing a dedicated scheme selection option, helping applicants and brokers navigate the product more easily.
For many first-time buyers in Horsham and Southwater, the £300,000 cap may still provide access to a range of apartments, maisonettes and smaller homes across the local area, depending on property type and location.
Important Considerations
While the lower deposit requirement may help more buyers access the market sooner, affordability checks remain an important part of the process.
Applicants’ existing credit commitments and financial outgoings will still be carefully assessed, and the product is only available to genuine first-time buyers. The scheme does not allow applicants to own additional properties or buy-to-let investments.
As with any mortgage product, buyers should carefully consider the longer-term affordability of repayments and seek professional advice before proceeding.
Could This Scheme Help You Buy Your First Home in Horsham or Southwater?
For some buyers, particularly those with stable incomes but limited savings, schemes like this may offer a realistic route into homeownership earlier than expected.
However, every buyer’s circumstances are different. Factors such as income, monthly commitments, future plans and property goals should all be considered when deciding whether a low-deposit mortgage is the right fit.
At About Mortgages, we understand that buying your first home can feel overwhelming, particularly in an ever-changing mortgage market. Our local team supports first-time buyers across Horsham, Southwater and the surrounding West Sussex villages. We are always happy to talk through the available options and help you understand what is achievable based on your individual circumstances:
01403 283928
p.davies@aboutmortgages.co.uk
Article by Paul Davies - Managing Director, AboutMortgages & At Home Estate and Lettings Agency