Lloyds Banking Group has announced a new mortgage product designed to help some first time buyers enter the housing market with deposits starting from £5,000.
The scheme is aimed at buyers struggling to save larger deposits while continuing to deal with high rental costs and wider cost of living pressures.
The mortgage offer is expected to apply to selected properties and will involve affordability checks alongside standard lending requirements.
Housing affordability has remained a major issue across many parts of the UK, particularly for younger buyers facing rising property prices and higher borrowing costs over recent years.
Industry analysts said smaller deposit products could help increase access to home ownership, although concerns remain about long term affordability if interest rates remain elevated.
Lenders have been under growing pressure to find ways of supporting first time buyers after housing activity slowed during periods of higher mortgage rates.
Recent market data has suggested some improvement in mortgage approvals as borrowing costs stabilise, although many households continue to face financial pressure from wider household expenses.
Property experts said low deposit mortgages may become more common if competition between lenders increases during the second half of the year.
Lloyds said the new product forms part of wider efforts to improve access to home ownership for buyers with limited savings.