Buy with 5% Deposit | 95% ltv mortgage experts

by Aaron Strutt

Feb 01 2026

Which banks and building societies offer 5% deposit mortgages 

There are over 30 high-street banks and building societies now offering 95% loan-to-value (LTV) mortgages — meaning you can secure a mortgage with a 5% deposit. These products are primarily aimed at first-time buyers and buyers with modest deposits who have been renting or waiting for a good time to get on the property ladder. If you want to buy a £300,000 property with a 5 per cent deposit, you only need £15,000 in savings to get a mortgage.

The latest Connells Group February market brief highlights that the UK housing market has kicked off 2026 with a surge in activity from first-time buyers. First-time buyers purchased 34.3% of homes sold across Great Britain in January. In London, first-time buyers now account for 48.3% of purchases.

Main lenders with 5% deposit mortgage options

The following lenders regularly offer 95% loan-to-value mortgages (i.e., 5% deposit products):

• Halifax via brokers– 95% mortgages available for first-time buyers and home movers with a minimum 5% deposit.
• NatWest / Royal Bank of Scotland – 95% loan-to-value products for eligible buyers.
• Nationwide Building Society – 95% mortgages with specific eligibility requirements. Popular with Nationwide's Helping Hand 5.5 times income scheme. 
• Barclays – 95% mortgages are often available across both fixed and variable deals. Barclays tends to have well-priced rates.
• HSBC – Offers 95% LTV mortgages with terms up to 40 years, subject to criteria.
• Santander – Traditional 95% deals, in addition to recent near-95% products (e.g., 98% first-time buyer deals), though the latter have stricter rules.
• Skipton Building Society / Virgin Money – Also operate in the 95% market.

Note: Some products extend beyond 95% LTV (e.g., Santander’s 98% first-time buyer mortgage), but these tend to have more restrictive terms including maximum loan caps, stricter income multiples, and tighter property eligibility.

Typical lending criteria for 5% deposit mortgages

Although each lender sets its own criteria, most banks and building societies assess applications against the following key tests:

Mortgage affordability and income requirements 

• A robust income assessment — lenders will check salary, bonuses, and sometimes additional income sources.
• Typical affordability calculators consider outgoings, existing credit commitments, and repayment capacity.
• Some lenders will apply a multiple of income cap (e.g., 4.5× to 6× combined income), particularly for smaller deposits.

Deposit source and size

• Minimum 5% cash deposit of the property value is required (some require this as genuine own savings).
• Some schemes limit acceptance of gifted deposits unless from certain family members or under specific rules.

Property rules for 5% deposit mortgages

• Usually available for main residence (owner-occupier) only — not buy-to-let or second homes.
• Lenders may set property price caps (commonly around £600,000 for standard 95% products). 
• New-build properties can be more challenging without government or insurer backing.

5% deposit mortgage maximum loan sizes

Some lenders like Nationwide 95% Mortgage Details cap their 95% LTV mortgage at around £750,000 — meaning you could borrow up to £712,500 on a property worth £750,000. Halifax 95% mortgage terms similarly set a £570,000 maximum loan amount with a property price cap of £600,000. 

Credit profile

• An acceptable credit history is essential; adverse records can restrict eligibility.
• Lenders will look at credit score, recent defaults, CCJs, and repayment history.

Repayment basis

• Repayment mortgages (capital + interest) are generally required for 95% LTV products — interest-only is unlikely to be approved at this level.

Comment from Aaron Strutt, Product Director at Trinity Financial, on the 5% deposit mortgage market...

“In the current market, 5% deposit mortgages can be a valuable route onto the property ladder, especially for first-time buyers. However, because the lender is financing 95% of the property value, affordability assessments and criteria are understandably more detailed than for higher-deposit products. Lenders scrutinise income, outgoings, credit history and the sustainability of your financial position. Working with a broker early not only clarifies which lenders are most receptive to your circumstances but also helps tailor your application to meet each lender’s specific rules. It is worth noting that rates are much cheaper if you could raise access a 90% ltv mortgage, so have a 10% deposit. If you are taking a low deposit mortgage it is important to get the most competitvely priced rate to minimise your monthly repayments.”

Which lenders offer the most competitive two-year fixed rates with a 5% deposit?

Source: Moneyfacts

5% deposit mortgages have returned to the UK market in force, thanks to competitive lender appetite and ongoing government support to widen access to homeownership. While the product choice and criteria vary, you’ll find a broad range of options from major banks and building societies if your financial profile aligns with their lending rules.

Lending solutions with Trinity Financial

Are you looking to buy a property and require expert advice? We’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.

Call Trinity Financial on 020 7016 0790 to secure a 5% deposit mortgage, book a consultation or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage