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Make your dream home a reality with a low deposit mortgage. Let us help you find the perfect mortgage deal and get you into your new property with a 5% deposit, or 95% LTV mortgage.
If you are looking to get onto the property ladder and only have a small deposit, then a 95% mortgage could be your lifeline. It means that you will need to have a deposit of at least 5%. There are risks associated with a higher loan to value (LTV) mortgage and your Mortgage Adviser will explain these to you.
Mortgage terminology can be confusing, especially when talking about the loan to value. If you take a 95% mortgage you will need a 5% deposit (to get to 100%). This is the ratio of the mortgage size you’ve taken compared to the value of your property expressed as a percentage.
If you purchased a house for £150,000 with an LTV of 95% you would need a deposit of £7,500. There are a lot of lenders offering 95% mortgages but they won't necessarily offer them to everyone. If you have complex income or adverse credit you may only be able to get a 90% LTV mortgage, ie you’ll need a deposit of 10%
A low deposit mortgage is a home loan that allows buyers to secure a property with a smaller upfront deposit, typically less than the standard 20% of the purchase price.
These mortgages are often designed to help first-time buyers or those with limited savings enter the property market. While they offer the advantage of requiring less initial savings, low deposit mortgages may come with higher interest rates or additional fees. It's important to carefully consider the terms and long-term affordability of these loans before proceeding.
Yes, but the criteria you need to meet is stricter than lower LTV products due to the higher risk to the lender. If you have a history of bad credit or blips in your credit file, it will be more difficult to secure a 5% deposit deal.
The mortgage will work in the same way as any normal mortgage. Acceptance is not guaranteed and is subject to full underwriting, affordability, credit status and the property type. You can improve your chances of success by reading our get mortgage ready guide
There are many ways to get a 95% mortgage in the UK to help those with a 5% deposit purchase their first property with the vast majority of reputable, high-street lenders offering them.
Our local expert Mortgage Brokers will take the time to explain a 5% deposit mortgage to you and to help you decide upon the best option for your unique needs.
As long as the property you are purchasing will be your main residence, you can be considered for a 5% Deposit Mortgage. You can not purchase a buy to let or commercial property with a 5% deposit mortgage.
The minimum deposit for a buy to let purchase is 20%, so 80% LTV. 95% mortgages are only available to you if you are purchasing a residential property as your main residence.
All lenders have their quirks and things that they will/won’t accept.
The general points to note are:
The standard 95% Products *should* be here for good…. Almost all high street lenders are offering a 95% LTV product at the moment.
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The best way to ensure mortgage success is to use a Mortgage Broker. There are so many variables when applying for a mortgage that can help or hinder you.
Applying to too many lenders in a short period can damage your chances of success and your credit rating.
This is why we take the time to fully understand your mortgage requirements and review your documents before we recommend a mortgage to you.
We would recommend the following to make sure you are in the best possible position for us to help you:
With any mortgage, we would always recommend that you put down as much deposit as you can. This is to ensure that you get the best possible rate available and to minimise your risk of negative equity should house prices fall.
By opting for a 5% Deposit product, the interest rate you pay will be higher than it would typically be if you could put down 10% plus.
There is also a much higher risk of falling into negative equity (where your property value is lower than the outstanding mortgage balance).
An important point to consider is “Am I eligible for a mortgage?”. This is why using a Mortgage Broker is so important, we know the market and after assessing your financial position will be able to make a recommendation to you.
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Nicola was absolutely magnificent. She lined up the best mortgage offers based on the deposits I proposed, twice after I pulled out of the house I was initially buying. She kept me up to date and supported me throughout the entire process. Would highly recommend.
The experience as a whole was 10/10, Nicola has made this entire process so easy and painless. She assisted us every single step of the way and I couldn’t be more thankful. I would recommend Hello Mortgage to everyone.
We dealt with Nicola, throughout the process she was attentive, clear and timely with her advice and support. Great personal service.
Nicola was fabulous from start to finish. No question was a silly one and she was always great at getting back to me in a timely fashion. Nicola, 11 out of 10. You were brilliant and I thank you again for all the hard work you put into.
As a first time buyer the thought of going through the whole mortgage application was daunting. From start to finish Nicola was very helpful, keeping me up to date with every bit of the application. 10/10, I couldn’t have done it without Hello Mortgage
Our experience with hello mortgage couldn’t be any better. From our first meeting Nicola was really helpful explaining the whole process in detail (for 2 first time buyers this was great). Nicola kept in touch when needed and helped us a lot.
Having a 'consent to let' on one property and needing another mortgage, we weren't a straight-forward case, however, Nicola went above and beyond to find the best lender for our position, constantly communicating during the process. Would highly recommend!
Would highly recommend Hello Mortgage! 1st time buyers and Nicola went out of her way to ensure we were getting the best mortgage! She went over and beyond, even calling us back from home to discuss the mortgage offer with my partner when he came in from work. We will deffo be back when needed!
They kept me sane through everything. Was responsive, knowledgable and friendly with every query I had. I finally have my house, with the best mortgage rate and help I’ve ever received. If/when I ever move home I’ll be using Hello Mortgage again and I couldn’t recommend them more.
As a first time buyer, I was sometimes confused by the mortgage jargon but Dan explained everything perfectly, so I was always aware of what was happening and felt a real understanding of the process. If you are thinking about using a broker, I would not hesitate to recommend Dan.
Got remortgage in less than 5 weeks. The service from Hello has been outstanding from beginning to end; fast, efficient, mortgage rate, payments much better than expected, knowledgeable, honest advice and flexible appointments are just a few of the reasons I will definitely be using Hello Mortgage again.
If you are looking to secure the best mortgage deal, Hello Mortgage is the go-to broker for all your needs. With their wealth of experience and knowledge, they cover the entire market, ensuring they find the most suitable mortgage product for you. As a client, you can breathe easy knowing that they are directly authorised by the Financial Conduct Authority (FCA). Furthermore, Hello Mortgage is dedicated to offering you top-notch service by providing free initial advice, granting you access to intermediary-only mortgage deals, as well as customising weekend and out-of-hours appointments to fit your schedule.
Their certified advisers, with a minimum qualification of CeMAP III and CeRER, make sure that you fully understand the process and receive the best possible guidance. And for those in need of a conveyancing firm, Hello Mortgage partners with an exclusive discounted firm, saving you even more money and stress. Make the right choice by choosing Hello Mortgage as your broker, and leave your mortgage concerns to the experts.
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No, at the moment you need an 85% mortgage, so a 15% deposit
Yes, but you will need to use the deposit unlock scheme which is only available via a very small number of lenders. You should ideally have a 10% deposit if you are wanting to buy a new build house.
No, 95% mortgages are not exclusively available to first-time buyers. They may also be accessible to non-first-time buyers who are purchasing a new property or remortgaging an existing one. However, the availability of options may be limited at this high loan-to-value ratio.
Typically, the interest rate on a 95% loan-to-value (LTV) mortgage may is higher compared to a mortgage with a lower LTV ratio. This is because a higher LTV mortgage presents a greater risk to the lender, as the borrower has less equity in the property, and therefore, the lender may charge a higher interest rate to compensate for this increased risk. However, interest rates can vary based on several other factors, such as the borrower's credit score, the Bank of England base rate, and current market conditions.
