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5% deposit mortgage

Turn your 5% deposit into the key to your new home. Start your journey today.

This product is designed for customers living in the Channel Islands or the Isle of Man and is provided by Lloyds Bank Corporate Markets plc a wholly owned subsidiary of Lloyds Banking Group plc.

Features and benefits

Faster route to home ownership

A 95% mortgage opens the door to homeownership sooner, making your dream move a reality with a smaller deposit.

Fixed rate options

For the first 3 to 5 years of your mortgage.

Low deposit

You only need to put down a minimum of 5% of the total property value as a deposit.

How does it work?

What is a 5% deposit mortgage?

With this mortgage, you could borrow up to 95% of your home’s value. This means you’ll just need a 5% deposit.

Example of a 95% mortgage on a property worth £350,000.

  • You'll need to pay a 5% deposit – worth £17,500 – to purchase the property.
  • Your mortgage can then cover the remaining 95% – £332,500.

Your mortgage would have a 95% LTV, or Loan to Value. Loan to Value is simply the percentage of the property value covered by your mortgage.

Mortgage calculator

Use our mortgage calculator to find out what your mortgage payments might be and discover a mortgage deal to suit you with Lloyds International.

Islands mortgage calculator

Before you go ahead

Are you a first-time buyer?

5% deposit mortgages can help first-time buyers. You may qualify if the following applies to you.

  • This is your first home.
  • Your property is valued up to £500,000.
  • Your deposit is between 5 to 10%.
  • It's not a buy to let or remortgage.

Exclusions and conditions may apply.

Things to consider

While a 5% deposit mortgage can help you get on the property ladder sooner, it’s not always the best option for everyone. Before applying, think about these key points.

  • Higher Loan-to-Value (LTV) ratio. This may mean higher interest rates.
  • Higher monthly repayments. Smaller deposits may lead to bigger mortgage payments.
  • Risk of negative equity. If property values fall, you could owe more than your home is worth.

How to apply

 
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Speak to us

Pop into your local branch or request a video appointment from the comfort of your own home. Speak to one of our mortgage experts and they’ll talk you through your options and find the best deal for your needs.

You could lose your home if you don’t keep up your mortgage repayments.

Let’s look at the details

  • You can get a 5% deposit mortgage if you’re a first-time buyer living in the Isle of Man or Channel Islands.

    The home you want to buy must:

    • include a deposit of at least 5% and less than 10%
    • be your only home, and not a buy-to-let property
    • not exceed a maximum loan of £500,000
    • be a repayment mortgage
    • not be a new build flat, but new build houses and bungalows are acceptable
    • not part of a shared ownership scheme
    • not be a new build conversion or renovation
    • not be a shared equity home or self-build.

    You’ll also need to meet the criteria, which we check during the application process. This can include checks on your income and any outgoings, plus a credit check.

  • We offer 95% mortgages on properties worth up to £500,000. This means you may be able to borrow up to £500,000 with a 5% mortgage deposit.

    As a responsible lender, we make mortgage offers tailored to you, based on various factors. This includes your credit score, affordability assessment and sometimes the energy efficiency of your property.

  • You can get a 5% deposit mortgage on most types of properties in the Isle of Man and Channel Islands with Lloyds International. This excludes new build flats and some other property types.

    The property must be your only home and not part of a government scheme, shared equity, right to buy, or buy-to-let schemes.

  • If you have negative equity in your home, it can mean that you would sell your home for less than the value of the mortgage.

    When you sell the property, you still need to pay back your mortgage after the sale. Negative equity will leave a shortfall between the sale price and mortgage value. In this case, you’ll need to have money to pay the difference.

 

 

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