Buy a home with a 5% deposit
We can help whether it is a 5% or 10% deposit and are very first-time buyer friendly with lots of help along the way.

All our fees are fixed, and you will be covered by our No Sale, No Fee Policy.

Get a Conveyancing Quote

 Buying with a 5% deposit for a House or Flat

How to buy a house with 5% deposit?

(Last Updated: 10/02/2024)
4 min read

What percentage should a deposit be to buy a house?

The contract of sale states: "The buyer is to pay or send a deposit of 10 per cent of the purchase price no later than the date of the contract" . However, you can agree to a 5% deposit on the exchange of contracts if you are getting a 95% mortgage.

The government launched a mortgage guarantee scheme to support home buyers with a lower deposit deposit. The mortgage guarantee scheme is available with several high-street banks, including Lloyds, Santander, Barclays, HSBC and NatWest. The scheme is planned to run until 30 June 2025, though it can be closed sooner than this.

The guarantee protects the bank, not the borrower if the borrower doesn't repay the mortgage in full to the lender on voluntary sale or repossession. Where there is a shortfall, the government reimburses the mortgage lender.

Are you eligible for a 95% mortgage?

This mortgage guarantee scheme is available to first-time buyers or home movers, and the specific eligibility criteria are:

  • purchase price of no more than £600,000
  • not a new build property
  • loan-to-value (LTV) of between 91% and 95%
  • deposit between 5-9%
  • residential mortgage (not a buy-to-let mortgage)
  • repayment mortgage (not an interest only)

For first-home buyers, the 5% deposit mortgage guarantee scheme makes home-buying more affordable.

How much deposit do I need for a house worth £300,000?

You can buy a £300,000 property using a 5% deposit of £15,000; however, some sellers will ask you to pay a 10% deposit of £30,000.

You might be tempted to ask the estate agent before you offer if the seller will accept a 5% deposit, which may make the seller nervous about selling to you. It is best to leave it until your offer is accepted and you have your mortgage offer. The seller is more likely not to be bothered once they know you can afford the property with a mortgage.

Read more - How to make an offer on a house.

Buying with a 5% deposit calculator

Find out the deposit amount and how many years it'll take to save for a 5% house deposit.

What is the price of the property?
What is the 5% house deposit?

What is the 95% mortgage?
How much can you save per month?
How many years to save up for a 5% house deposit?

How long does it take to save up for a 5% house deposit?

Use our FREE online mortgage calculator to see how much your monthly mortgage repayment will be on a 95% mortgage.

How to apply for a 5% deposit mortgage?

You can apply directly with the bank using their online application form or a mortgage broker to help. The benefit of a mortgage broker is that they'll complete the mortgage application for you. You can apply using our panel mortgage broker here.

Here are some links to apply directly online:

What are the Pros and Cons of a 5% house deposit?

  • Less time to save for a lower deposit.
  • Buyer sooner and cheaper as property prices are going up.
  • Start paying off the mortgage, stop paying rent and benefit from increasing house prices.

  • A 95% mortgage is high so that the mortgage repayments will be higher than a lower loan to value.
  • If property prices drop, you risk being in negative equity quicker.
  • Not all sellers will agree to a 5% deposit.
  • You are still liable for 10% of the purchase price if you pull out after exchanging contracts.

Frequently Asked Questions
Andrew Boast of Sam Conveyancing
Written by:
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Caragh Bailey, Digital Marketing Manager
Reviewed by:

Caragh is an excellent writer in her own right as well as an accomplished copy editor for both fiction and non-fiction books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey and mortgage related articles.

People also searched for

How to Negotiate When Buying a House, with SAM Conveyancing

How to Negotiate When Buying a House

Buying a House Without a Mortgage and bank not involved

Buying a house without a mortgage

buying a house jointly with parents - mum and dad with children and shared mortgages

Buying a house jointly with parents