5% Deposit Mortgages
- We have helped 1000’s of people to secure a mortgage.
- We believe that building a relationship is key to ensuring that you always have the best mortgage for your circumstances.
- We offer advice on other products such as life assurance and critical illness cover
What's On This Page?
GET IN TOUCH
5% Deposit Mortgages
Exploring a 5% deposit mortgage as a first-time buyer requires careful consideration of eligibility, interest rates, lender options, and whether buying now or saving for a larger deposit aligns with your financial goals.
Can I get a mortgage with a 5% deposit as a first-time buyer?
Yes, you can get a mortgage with a 5% deposit as a first-time buyer, but this will be subject to your credit score and affordability.
Which lenders accept a 5% deposit mortgage?
Lenders happy to accept a 5% deposit for a mortgage include high street names, such as Santander, TSB and HSBC [information correct at time of writing in July 2026].
What are the interest rates on a 5% deposit mortgage?
Interest rates on mortgages with a 5% deposit are currently around 5.5% [information correct at time of writing in July 2026]. The exact rate will depend on the specific mortgage product, including whether it is a two-year or five-year fixed-rate deal.
Rates can also vary depending on whether the mortgage includes an arrangement fee charged by the lender.
It is important to note that interest rates can change, and a rate is not secured until a full mortgage application has been submitted.
Is it better to save a bigger deposit or buy now with 5%?
If you can get to a 10% deposit, it is likely to be more beneficial, as interest rates generally reduce when you reach that next level. You will typically get a slightly cheaper interest rate, meaning your monthly payments will be lower. As you are also borrowing slightly less, this will help to reduce your monthly payments further.
That being said, if it takes you a long time to save up the additional deposit, the increase in property prices during that time may outweigh the savings from the lower interest rate.
It is not always the case that waiting is better, but if you are able to get to a 10% deposit rather than a 5% deposit, this should help to reduce your interest rate.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.