Can I Get a Mortgage With a 5% Deposit?
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
Why This Matters for Your Mortgage
Understanding these details helps you make informed decisions during the mortgage process. Every element of your application—from deposits to documentation—affects your approval chances and the rates you can access.
Lenders assess applications holistically, weighing multiple factors together. Knowing what they look for allows you to present the strongest possible application. This is particularly important for non-standard situations where lender criteria varies significantly.
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Related Questions
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Content reviewed: January 2026
CeMAP awarded by The London Institute of Banking & Finance. Cert CII (MP) awarded by the Chartered Insurance Institute.