5% Deposit Mortgage
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5% Deposit Mortgage
Jess Pearson talks to us about 5% deposits.
Can you get a mortgage with a 5% deposit?
Yes, there are lenders who offer a mortgage when you have a deposit of 5%. Other criteria come into play, but lenders are much more open to 5% deposits in today’s market, compared to the past [correct at the time of recording in March 2025].
What type of property can you buy with a 5% deposit?
With a 5% deposit on a residential basis you can purchase most kinds of properties. There are some exclusions, such as new build flats and potentially some non-standard construction properties.
What schemes are available when acquiring a mortgage with a 5% deposit?
One scheme is in fact coming to an end on 30 June 2025, and has been on the market for a while. This is the Mortgage Guarantee Scheme, which is available to home movers as well as First Time Buyer for properties up to £600,000 in value.
This scheme allows lenders to offer mortgages of up to 95% Loan to Value, as the government underwrites the risk. It ultimately gives lenders the confidence to offer products at this Loan to Value.
A second scheme is First Home, which offers new build homes at a discount for key workers and local residents. It helps in that the amount of deposit you have saved can go that bit further for you.
The Schemes on offer constantly change in line with market conditions and new ways of growing the housing market. The best thing to do is to keep an eye out for any changes moving forwards.
Which lenders provide 5% deposit mortgages?
Not all lenders offer products with a 5% deposit, as it does depend on the type of market they’re choosing to target, based on their business strategy and requirements.
As a whole, many lenders are offering mortgages with a 5% deposit, so there are plenty of options. The mortgage market is forever changing, so a lender that can do this today might not tomorrow, but there’s always another lender in the shadows about to introduce products to replace them.
Who is eligible for a 5% deposit mortgage?
Mortgages where you have 5% deposit are available to First Time Buyers, home movers and remortgages – for anyone who meets the lender’s criteria at the point of application.
The best way to establish whether you’d meet the criteria is to get in touch with a mortgage broker. We would carry out some initial research for you.
Can I get a mortgage with a 5% deposit with bad credit?
It’s not a possibility to completely rule out. It would depend on the type of bad credit you have, how long ago this occurred and whether it’s something you’re still experiencing.
When there is bad credit, it does become slightly more difficult to qualify with some lenders based on their credit scoring systems.
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Can I remortgage with a 5% deposit?
With a remortgage, you don’t specifically need a deposit. The 5% would be the equity held in the property, which is the value of your home minus the mortgage amount owed. If the amount you owe on your mortgage is 95% of the property value, you would qualify for this type of product.
Lenders do allow for remortgages in this loan-to-value bracket, but usually this is based on the mortgage amount you have now, rather on an increase in your borrowing. They’re unlikely to allow you to raise additional funds to stretch to that 5% deposit product.
How can you get a mortgage with a 5% deposit? What’s the process here?
I would suggest a starting point of getting in touch with a mortgage broker – this is where our expertise will come in handy for you. The process would be to establish your current circumstances including income and expenditure.
We would see whether you meet the lender’s initial criteria and establish how much you are able to borrow. This will give you a better idea of how much deposit would be required to purchase the property you desire.
What else do we need to know about a 5% deposit mortgage?
Utilise a mortgage broker’s knowledge and experience to assist you with purchasing a property. We’ll ensure you get the best deal on the market that meets your needs and circumstances, in order for you to purchase your home.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.
THERE MAY BE A FEE FOR MORTGAGE ADVICE. THE PRECISE AMOUNT OF THE FEE WILL DEPEND UPON YOUR CIRCUMSTANCES, BUT WILL RANGE FROM £99 TO £549 AND THIS WILL BE DISCUSSED AND AGREED WITH YOU AT THE EARLIEST OPPORTUNITY.
ASSET HARBOUR MORTGAGE AND PROTECTION LIMITED TRADING AS ASSET HARBOUR MORTGAGE AND PROTECTION ARE AN APPOINTED REPRESENTATIVE OF HLP PARTNERSHIP LIMITED, WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
