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.
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.
Here are some of the major lenders offering 95% mortgages as of 2025:
💡Remember: Most mortgage deals come with some upfront fees, so it’s worth checking the full cost of the deal before you apply.
To be eligible for a 5% deposit mortgage, you’ll usually need to meet the following criteria:
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:
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:
💡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.
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.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
