Question 1

Can I really get a mortgage with just a 5% deposit?

Accepted Answer

Yes. Many major lenders offer 95% LTV (loan-to-value) mortgages, particularly under the government's Mortgage Guarantee Scheme. These are genuine products available to first-time buyers and home movers on properties up to £600,000. Rates are higher than at 85–90% LTV, but we'll compare every option to get you the most competitive deal.

Question 2

What is the Mortgage Guarantee Scheme?

Accepted Answer

The Mortgage Guarantee Scheme is a government initiative that encourages lenders to offer 95% LTV mortgages by providing a guarantee to cover potential losses above 80% LTV. This means lenders can offer you a 95% mortgage with less risk to themselves — making these products widely available. The scheme is available on properties up to £600,000.

Question 3

How much will I pay each month on a 5% deposit mortgage?

Accepted Answer

Monthly payments depend on the property price, the interest rate, and your mortgage term. On a £200,000 property with a 5% deposit (£10,000), your mortgage would be £190,000. At a 5% interest rate over 25 years, payments would be around £1,111/month. We'll model the exact figures for you and compare every available rate.

Question 4

Is a 5% deposit mortgage more expensive than a bigger deposit?

Accepted Answer

Yes — lenders charge higher rates at 95% LTV because the risk to them is greater. A 10% or 15% deposit will unlock better rates and lower monthly payments. However, if saving a bigger deposit means renting for longer, the total cost can often outweigh the rate difference. We'll run the numbers honestly so you can make the right call for your situation.

Question 5

What credit score do I need for a 5% deposit mortgage?

Accepted Answer

Lenders are generally more cautious with 95% LTV products, so a good credit history is important. Minor issues like a missed payment 3+ years ago are usually fine; more serious defaults or CCJs may make 95% LTV harder. We'll assess your credit profile and identify which lenders are most likely to accept your application before we apply.

Question 6

Are there alternatives to a 5% deposit mortgage?

Accepted Answer

Yes — Shared Ownership lets you buy a share of a property with a smaller mortgage (and therefore a smaller deposit); a Lifetime ISA gives you a 25% government bonus on savings; a guarantor mortgage uses a family member's savings or property as additional security. We'll show you all the options so you can choose what's right for you.

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