95% LTV Mortgages
Buy your home with just a 5% deposit. Access government-backed schemes and competitive rates with our 95% LTV mortgage expertise.
Content reviewed: 13 January 2026
Can you get a mortgage with only a 5% deposit?
Yes, 95% LTV mortgages let you buy a home with just a 5% deposit. For a £200,000 property, you need £10,000 deposit and borrow £190,000. The Mortgage Guarantee Scheme helps lenders offer these products. Interest rates are typically 0.5-1% higher than 90% LTV, but 95% LTV enables you to buy sooner.
Helping buyers get on the property ladder with smaller deposits.
Can you get a mortgage with only a 5% deposit?
Yes, 95% LTV mortgages allow you to buy a home with just a 5% deposit. For a £200,000 property, you'd need £10,000 deposit and borrow £190,000. The Mortgage Guarantee Scheme helps lenders offer these products by providing government guarantees. Interest rates are typically 0.5-1% higher than 90% LTV products, but 95% LTV mortgages enable you to buy sooner. Many buyers use them as a stepping stone, remortgaging to better rates once they've built equity through payments and property appreciation.
What Are 95% LTV Mortgages?
A 95% Loan-to-Value (LTV) mortgage means you borrow 95% of the property value and put down just a 5% deposit. For example, on a £200,000 property, you'd need a £10,000 deposit and borrow £190,000. This makes homeownership accessible with smaller savings compared to traditional 10-20% deposits.
The Mortgage Guarantee Scheme, launched by the government in 2021, helped make 95% LTV mortgages widely available again after they nearly disappeared during the pandemic. By providing guarantees to lenders, the government reduced risk and encouraged lenders to offer competitive 95% products to both first-time buyers and home movers.
While 95% LTV mortgages have higher interest rates than mortgages with larger deposits (typically 0.5-1% higher), they enable you to buy sooner and start benefiting from property ownership. Many buyers use them as a stepping stone, remortgaging to better rates once they've built equity through payments and property appreciation.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Key Benefits of 95% LTV Mortgages
Get on the property ladder with just a 5% deposit through 95% LTV mortgage schemes
Some 95% mortgages backed by government guarantees, reducing lender risk and improving availability
Many 95% LTV products designed specifically for first-time buyers getting on the ladder
Despite high LTV, competitive rates available from major lenders with government support
95% LTV Mortgage Guide: Expert Tips
Everything you need to know about high LTV mortgages
Loan-to-Value (LTV) is the percentage of the property value you're borrowing. A 95% LTV means you're borrowing 95% and putting down 5% deposit. On a £200,000 property, that's a £10,000 deposit and £190,000 mortgage. Lower LTVs get better rates—90% LTV typically offers rates 0.2-0.5% lower than 95%. Even saving an extra 5% for 90% LTV can save thousands over the mortgage term.
A 95% LTV mortgage requires 5% deposit; 90% LTV requires 10%. The rate difference is usually 0.2-0.5%. On a £200,000 mortgage, this could mean £30-£80 more per month at 95% LTV. Over 25 years, that's £9,000-£24,000 extra. However, saving the additional £10,000 for 90% LTV takes time during which prices might rise. We can calculate whether saving more or buying sooner makes more financial sense.
The Mortgage Guarantee Scheme (launched 2021) helps lenders offer 95% LTV mortgages by providing government guarantees. This increased lender confidence and availability of high LTV mortgages after they nearly disappeared. The scheme applies to properties up to £600,000 for both first-time buyers and home movers. It's made 95% mortgages much more accessible and competitive than they were before.
95% LTV mortgages have higher rates than lower LTVs due to increased lender risk—currently around 0.5-1% higher than 75% LTV products. While this costs more monthly, it gets you on the ladder sooner. Once you've built equity through payments and property value increases, you can remortgage to a better LTV band with lower rates. Many buyers use 95% LTV as a stepping stone to homeownership.
To improve your chances of 95% LTV approval: maintain a clean credit file for 6+ months, save a larger deposit if possible (even reaching 90% helps significantly), reduce existing debts before applying, ensure stable employment (6+ months in current job), avoid job changes during application, register on electoral roll, and get a Decision in Principle before house hunting. Small improvements make significant differences at high LTVs.
With just 5% equity initially, building more is crucial for accessing better rates when remortgaging. Make regular overpayments if you can (most allow 10% annually). Property value increases build equity automatically. After 2-3 years, you might have 15-20% equity through payments and growth, unlocking much better rates. Focus on paying down the mortgage and benefiting from property appreciation to escape high LTV rates sooner.
95% LTV Mortgage FAQs
Common questions about high LTV mortgages answered
Your home may be repossessed if you do not keep up repayments on your mortgage.
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