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Which banks offer 5% deposit mortgages?

author: Sarah Neate

By Sarah Neate

Since the Coronavirus pandemic began, many mortgage lenders stopped offering 5% (and even 10%) deposit mortgages. According to the Financial Times, this was not because lenders predicted a crash in house prices, it was because more existing customers were looking to take mortgage holidays.  

However, now lenders are offering these low deposit mortgages again, with the help of the Government Mortgage Guarantee scheme. 

We look at who can get a 5% deposit mortgage and which banks and lenders are offering them. 

Can you still get 5% deposit mortgages?  

In short, yes, this is now possible again. In April the government launched a mortgage guarantee scheme which will run until December 2022. This scheme has been set up to encourage lenders to offer more 5% deposit mortgages, as they ‘guarantee’ to cover the difference in the mortgage if the borrower defaults. The scheme doesn’t offer anything extra to borrowers, but it makes things less of a financial risk for lenders, so more people can get on the property ladder with a low deposit. 

Getting a 95% loan-to-value (LTV) mortgage will allow you to borrow 95% of the cost of the property you wish to buy. The rest is paid by your deposit.  

95% mortgages are great for people who want to get on the property ladder sooner rather than later. However, if you’re able to put down a bigger deposit, you should consider doing it as you’ll be offered a wider variety of mortgage options with lower interest rates.  

If you aren’t able to save for a bigger deposit, there are still some competitive deals on offer for those with smaller deposits.   

Banks and lenders offering 95% mortgages 

Here are a list of banks and lenders currently offering 95% mortgages. With most mortgage deals, you’ll be expected to pay some upfront fees, so visit each lender to learn what these are. 


For more information on Lloyds mortgage charges read here.   


Find out about Halifax mortgage rates and charges 


Find out more about Santander’s mortgage rates and charges here 


Find out more about Barclays rates and charges 


Find out more about HSBC’s rates and charges.   

Virgin Money  

Find out more about Virgin Money’s rates and charges 


Find out more about Natwest’s rates and charges here. Or alternatively you can contact them for free on 0800 068 0614. 

How do I qualify for a 5% deposit mortgage? 

To qualify for a 5% deposit mortgage:  

  • You must be buying a home in the UK. 
  • The property must be worth £600,000 or less 
  • The property can’t be a new build  
  • It can’t be a buy-to-let property  
  • You must have a deposit that equals 5% of the property’s overall value 
  • It has to be a repayment mortgage rather than an interest only mortgage 
  • You’ll need to pass the lenders affordability criteria  

Who is offering 10% deposit mortgages?  

Here’s a list of lenders offering 10% deposit mortgages:  

  • Natwest 
  • Royal Bank of Scotland 
  • Virgin Money 
  • First Direct 
  • HSBC 

What credit score is needed to buy a house?  

If you’re looking to apply for a mortgage, making sure your credit rating is in good condition is a great step. However, many more factors will be considered, such as your affordability and your debt-to-income ratio. 

Find out more information about what credit score is needed to buy a house. 


Disclaimer: All information and links are correct at the time of publishing.

author: Sarah Neate

By Sarah Neate

couple talking to a lender at a desk couple talking to a lender at a desk