5% Deposit Mortgages

Compare 5% Mortgage Deals

First Time Buyer 2 Year Fixed Rate - 5% Deposit »NatWest Mortgages

Call NatWest FREE on 0800 158 2934 

4.10%Reverts to 3.99% after 2 years


Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term. Early redemption charges may apply.

hsbc mortgages

First Time Buyer - 2 Year FIXED

Call HSBC FREE on 0800 077 4336 

1.94%Reverts to 3.69% after 2 years


Overall Cost for Comparison 3.50% APRC. This is the cost of the mortgage over the full term. Early redemption charges may apply.

Compare mortgage deals from lenders who will consider a 5% deposit mortgage.

5% Deposit Mortgage Deals

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed

4.10%

Reverts to 3.99%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term.
Fixed

4.10%

Reverts to 3.99%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.10% APRC. This is the cost of the mortgage over the full term.
Fixed

4.55%

Reverts to 3.99%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Fixed

4.55

Reverts to 3.99%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
First Time Buyer - Featured Deals

Provider

Type

Initial Rate

Initial Term

Overall Cost for Comparison

Max LTV*Product Fee 
Fixed

3.39%

Reverts to 4.95%

5

Years

4.50%

90%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.50% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Which? Mortgage Service
Mortgage ServiceWhole Of Market Mortgage AdviceFeaturesMore Info
yesWe’ll pick the perfect mortgage for you. Our mortgage advisers get paid salaries, not commission. So when they recommend a mortgage, you can be sure it’s the best one for you – not for them.
Call 0333 305 3219
More Info >

5% Deposit Mortgages 

LTV is the ratio of assets to loan and allows your lender to assess how much loan you require in relation to the size of your deposit and the overall value of your property. For example, if your home is worth £100,000 and you have a deposit of 5% (£5,000), this means that your LTV on your mortgage is 95% and you will need to borrow £95,000 from your mortgage lender. 

 

 To qualify for a 5% deposit mortgage, you will be expected to meet certain criteria established by the mortgage lender. Lenders will assess your personal circumstances before offering you a LTV mortgage. The following things may be taken into consideration by your lender when assessing your circumstances:

  • Your credit history – any previous loans, credit card debts, CCJs, outstanding overdrafts are taken into consideration.
  • You income – whether you will be able to keep up with the monthly repayments as well as interest (this depends on which method of repayment you choose).
  • Whether you have any previous late mortgage repayments.
  • The amount of money you are looking to borrow in relation to the value of your property (LTV).

Although finding a mortgage with a 5% deposit may be fairly difficult, there are some options that you could consider that could enable you to do so. As banks and building societies acknowledge the struggle to find a suitable mortgage with a relatively small deposit, they are beginning to offer mortgage deals such as the following:

  • Certain banks and building societies could offer mortgages with up to 95% loan to value (LTV) providing you opened a savings account with them and made regular payments for a certain period
  • There are a number of lenders that offer mortgages with over a 90% LTV providing you have a relative with a sufficient income that would be willing to act as a guarantor for your mortgage.

Alternatively, you may wish to consider the following options:

  • Sharing a mortgage with a relative, partner or friend could help you to share the costs of a mortgage, including the deposit
  • There may be a government scheme in your area that could help you to buy a property

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The above mortgage products highlighted on this website are available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you speak to an independent mortgage broker