Can You Get a Mortgage With Only 5% Deposit?

Yes, you can get a mortgage with a 5% deposit. Many UK lenders offer 95% LTV mortgages for first time buyers and home movers with good credit. You'll need stable income, a clean credit history, and the property must meet lender criteria. Rates are higher than larger deposit mortgages, but improve as you build equity.

Learn more about help to buy schemes in our detailed guide.

Learn more about bad credit mortgages in our detailed guide.

What is a 95% LTV mortgage?

A 95% LTV (Loan to Value) mortgage means you borrow 95% of the property value and put down 5% as your deposit. For example, on a £200,000 property, you'd need a £10,000 deposit and borrow £190,000. These are the highest LTV mortgages commonly available.

Are 5% deposit mortgages more expensive?

Yes, 5% deposit mortgages have higher interest rates than those with larger deposits - typically 0.5-1.5% higher than 10% deposit rates. This is because the lender takes on more risk. However, as you build equity, you can remortgage to better rates.

Which lenders offer 5% deposit mortgages?

Many high street and specialist lenders offer 95% LTV mortgages including Barclays, Halifax, Nationwide, NatWest, HSBC, Santander, and building societies. Availability and criteria vary - a broker can search across all lenders to find the best option for your circumstances.

Can I get a 5% deposit mortgage with bad credit?

It's difficult but not impossible. Most 95% LTV lenders require good credit scores. However, some specialist lenders offer 90% LTV (10% deposit) mortgages for those with minor credit issues. Saving a larger deposit significantly improves your options with adverse credit.

How much can I borrow with a 5% deposit?

Most lenders offer 4-4.5x your annual income, regardless of deposit size. For a £200,000 property with 5% deposit (£10,000), you'd need to borrow £190,000, requiring income of around £42,000-£47,500. Joint applications combine both incomes.

Quick Answer

Can I Get a Mortgage With a 5% Deposit?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Yes - many UK lenders offer 95% LTV mortgages with just 5% deposit. You'll need good credit and stable income, but it's a viable path to homeownership.

5% deposit mortgages (95% LTV) are widely available in the UK, making homeownership accessible for those who can't save larger deposits. Most major high street lenders and building societies offer these products to first time buyers and home movers. The trade-off is higher interest rates - typically 0.5-1.5% more than 10% deposit products - because the lender takes on more risk. You'll also have less equity buffer if house prices fall. However, getting on the ladder sooner means benefiting from potential house price growth and building equity through mortgage payments rather than paying rent.

Your home may be repossessed if you do not keep up repayments on your mortgage. With 95% LTV, you have less equity buffer - consider mortgage insurance.

Key Points

195% LTV mortgages available from major lenders
2Rates typically 0.5-1.5% higher than 10% deposit deals
3Good credit score usually required
4Available to first time buyers and home movers
5Mortgage Guarantee Scheme supports 95% LTV lending
6Can remortgage to better rates as equity builds

Eligibility Criteria

Minimum 5% deposit from acceptable source
Good credit history (clean or near-clean credit file)
Stable income meeting affordability requirements
Property must meet lender's criteria (standard construction)
Maximum property value varies by lender (typically up to £600,000)

Typical Timeframe

5% deposit mortgage applications typically take 4-8 weeks from application to completion. Getting a mortgage in principle takes 24-48 hours. The Mortgage Guarantee Scheme runs until June 2025, supporting lenders offering 95% LTV products.

Next Steps

1Calculate your 5% deposit amount needed
2Check your credit report for any issues
3Get a mortgage in principle to confirm budget
4Start your property search
5Apply through a broker for best rates

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Property Value	5% Deposit	Amount Borrowed
£150,000	£7,500	£142,500
£200,000	£10,000	£190,000
£250,000	£12,500	£237,500
£300,000	£15,000	£285,000

Can I Get a Mortgage With a 5% Deposit?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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