Find Brokers

5% Deposit Mortgage Brokers Search

Connecting You With Over 2,500 Regulated Mortgage Brokers & Advisers

Simply enter your postcode to find local mortgage brokers dealing with 5% deposit mortgages

Today's Highlighted Mortgage Brokers

Free Mortgage Guide

What is a 5% deposit mortgage?

A 5% deposit mortgage is a type of mortgage deal where you only pay 5% of the total value of the property as a deposit. Meaning you will borrow 95% of the value of the home you are buying.

Most lenders require a larger deposit.

Which tends to start at about 10% of the value of the property you are buying. However, not everyone can afford to save 10% deposit. This is why the UK government launched an initiative to encourage banks to offer mortgages for first time buyers with smaller deposits. 

It is worth noting that 5% deposit mortgages are sometimes referred to as 95% mortgages, because you will borrow 95% of the value of the property.

Can you get a mortgage with a 5% deposit?

The simple answer is yes. However please remember the less you borrow means the less your interest rates would be and thus the less your monthly payments would be. So, if you put a 10% deposit down on the same property your monthly payments would be less.

When did 5% deposit mortgages become available again?

The Government launched the 5% deposit mortgage scheme in April of 2021.

What is the 5% deposit mortgage government scheme?

The scheme works because the Government work with the Lenders, the government guarantees part of the loan. That means the government will cover the costs if the homeowner defaults (in other words, can’t keep up with their monthly repayments).

Who can benefit from the 5% deposit scheme?

The scheme is meant to help more people get onto the property ladder for the first time.

But technically, anyone looking to buy a home in the UK can benefit from this scheme. You don’t necessarily need to be a first-time buyer. 

How do you get a 5% deposit mortgage?

To qualify for a 5% deposit mortgage, you’ll need to fit these criteria:

  • You’re buying a main residential property. The 95% mortgage scheme can’t be used for a buy to let property.
  • Your deposit is 5% to 9% of the value of the property. That means your LTV will be 91% to 95%. 
  • The property you’re buying is under £600,000. 95% mortgages won’t cover properties above that.
  • You fit the lender’s standard mortgage eligibility criteria. These criteria will be different for different lenders. But it will likely include:
  • Proof you’re a British citizen or have UK residency status
  • Enough income to cover the mortgage repayments
  • A good credit score.

Worth Noting: Lenders normally limit the amount they lend to 4.5 times your annual income.

Should you get a 5% deposit mortgage?

Small deposit mortgages are a great way to get your first foot on the property ladder, but they’re not for everyone. Here are the pros and cons: 

Where can you get a 5% deposit mortgage?

A handful of UK lenders have already said they’ll offer 5% deposit mortgages, starting in April 2021. These include but not limited to NatWest, HSBC, Barclays, and Lloyds. A good mortgage broker & adviser will also be able to help with your mortgage.

If you are looking for Mortgage Brokers that deal with a 5% Deposit Mortgage then you have come to the right place. Mortgage brokers network have one of the largest selection of mortgage brokers and mortgage advisers waiting to help you. Mortgage brokers and mortgage advisers can find the best mortgage for you and apply for the mortgage on your behalf.

What will 5% Deposit Mortgage, mortgage brokers and mortgage advisers actually do?

Mortgage brokers and mortgage advisers will review the mortgages available to you based on your personal financial situation. Such as income, deposit etc and apply for one on your behalf. They can save you a lot of time by telling you which mortgage lenders are likely to accept you. They will also show you if you could improve your application, and could help speed up the process by dealing with some of the paperwork.

Why use 5% Deposit Mortgage, mortgage brokers and mortgage advisers?

The mortgage brokers and mortgage advisers could actually save you a lot of time and stress. They will handle everything from start to finish. Firstly searching for the right deal to applying and communicating with the mortgage lender on your behalf.

Mortgage brokers and mortgage advisers have expert knowledge and experience of the mortgage market. They will be able to recommend which deals suit your personal situation. They should have access to specialist mortgage software which allows them to search through the mortgage deals much faster and more thoroughly than you could possibly do yourself.

A mortgage broker should know which mortgage lenders are likely to accept you and will help you avoid deals that you are likely to be unsuccessful in being accepted. Unsuccessful applications could have a negative effect on further applications. You will also have the opportunity of recourse if you take out a mortgage using a broker if the mortgage turns out to be unsuitable. This isn’t available if you apply for a mortgage without taking advice.

Knowing your rights when using 5% Deposit Mortgage, mortgage brokers and mortgage advisers.

Firstly, you should check that your mortgage broker or mortgage adviser is authorised to give mortgage advice by consulting the Financial Services Register. Before you actually formally apply for a mortgage. The mortgage broker should thoroughly explore your financial circumstances. They should thoroughly explain what types of mortgages there are and the different deals available. They should advise you on which mortgage deals they feel meet your needs and give you clear justifiable reasons why they’re recommending a particular mortgage deal.

If for any reason you think you’ve received bad advice, you can make a formal complaint. Firstly speak with mortgage broker or mortgage adviser that advised you to see if they can offer a solution to the problem. If they don’t resolve your complaint satisfactorily within eight weeks from the date you complain. Then take your complaint to the Financial Ombudsman Service (0800 023 4567).

5% Deposit Mortgage for first time buyers.

Deciding where you want to buy your first home in is only the first step in getting the keys to your home. The process may seem a little overwhelming and daunting. From finding the property, getting the best mortgage deal to liaising with estate agents and solicitors. There are also a lot of different terms thrown at you from the second you start looking at mortgages. Terms like Repayment mortgages, fixed rate, standard variable, etc.

What is a Mortgage?

Simply, a mortgage is a loan you take out with a lender for a number of years. The length of time over which you have a mortgage is called the mortgage term. A mortgage can be anywhere between 5 and 40 years. A mortgage is a type of secured loan. Which means it’s secured against a property- usually the property you want to buy with the mortgage. Using a property as security for a loan means that the lender can repossess it if you don’t keep up mortgage payments.

To take out a mortgage, you must put down a mortgage deposit of at least 5% of the purchase price, meaning you take out 95% Mortgages. The mortgage will make up the rest. The good news is you don’t have to figure it all out by yourself. A Good mortgage broker or mortgage advisers should help you find the best mortgage deal for your situation. They should assist you at every stage of your home buying journey.

Who should I get advice from?

Speak to mortgage brokers and mortgage advisers for help and advice on a 5% Deposit Mortgage. By using Mortgage Brokers Network we can connect you with over 2,500 Mortgage brokers throughout the UK. Please use our ‘Get Mortgage Advice’ quote form to receive advice from local mortgage brokers and mortgage advisers on a 5% Deposit Mortgage or scroll through the companies listed and contact the mortgage brokers directly.

5% deposit mortgages

Great, Lets Find Your ideal Mortgage Broker

PLEASE ANSWER A FEW QUESTIONS TO HELP US MAKE THE PERFECT MATCH. YOUR MORTGAGE BROKER WILL THEN CONTACT YOU TO ARRANGE A FREE NO OBLIGATION CHAT. ​

Let’s find your ideal mortgage broker

Please answer a few questions to help us make the perfect match.
Your mortgage broker will then contact you to arrange a free no obligation chat.

Thanks For Your Enquiry. You Will Be Contacted By The Ideal Mortgage Broker Shortly.