Which banks offer 5% deposit mortgages?

When saving for a house, one of the biggest hurdles can be the deposit. A 5% deposit mortgage, also known as a 95% loan-to-value (LTV) mortgage, can help you get on the property ladder sooner – and they’re available from several banks and lenders in 2025.

We look at how these mortgages work, who offers them, and how to check if you’re eligible.

Can you get a 5% deposit mortgage in 2025?

Yes. These deals are designed to make homeownership more accessible by allowing you to borrow 95% of a property’s value, with just 5% coming from your own savings.

The Government’s Mortgage Guarantee Scheme – which began in 2021 – has been extended until 30 June 2025, encouraging more lenders to offer low-deposit deals. Under the scheme, lenders are partially protected if a borrower can't repay, which makes them more likely to approve low-deposit applications.

These mortgages are ideal if you're struggling to save a larger deposit but want to take your first step onto the property ladder. That said, if you can save more, you may be offered better interest rates and a wider range of deals.

Which banks offer 5% deposit mortgages in 2025?

Here are some of the major lenders offering 95% mortgages as of 2025:

• Lloyds
• Halifax
• Santander
• Nationwide
• Barclays
• HSBC
• Skipton Building Society
• First Direct
• Virgin Money
• NatWest

💡Remember: Most mortgage deals come with some upfront fees, so it’s worth checking the full cost of the deal before you apply.

Who can get a 5% deposit mortgage?

To be eligible for a 5% deposit mortgage, you’ll usually need to meet the following criteria:

• You must be buying a property in the UK
• The property must be worth £600,000 or less
• It must be your main residence – not a second home or buy-to-let
• It can’t be a new build if using the government scheme (though some lenders may allow it outside the scheme)
• You must have at least 5% of the property's value as a deposit
• You’ll need to pass affordability checks, including income and spending
• The mortgage must be on a repayment basis, not interest-only

Are there 10% deposit mortgage options too?

Yes – if you’ve managed to save a bit more, many lenders also offer 10% deposit mortgages, which typically come with lower interest rates and more flexibility. These lenders include:

• NatWest
• Royal Bank of Scotland
• Virgin Money
• First Direct
• HSBC
• Nationwide
• Barclays

What credit score do I need to buy a house?

While there’s no set score you need, a higher credit rating can improve your chances of being approved and getting a better deal.

Lenders also look at:

• Your income and outgoings
• Your employment history
• Any existing debts
• Your deposit size
• Your credit history – especially any missed payments or defaults

💡Tip: It’s worth checking your credit report with all three major credit reference agencies – Equifax, Experian, and TransUnion – before applying.

👉 If your credit score is low, you can work on improving it before applying.

Getting on the ladder with a smaller deposit

A 5% deposit mortgage could help you buy your first home sooner – especially if saving a large deposit feels out of reach. With support from the government’s guarantee scheme, more lenders are offering low-deposit deals again.

Just make sure you check the eligibility criteria and shop around for the best interest rates. If you’re not quite ready yet, keep saving – even an extra 1% deposit could open the door to better offers.