£5k Deposit mortgage

From 18 May 2026, your first home could be closer than you think. If you have a deposit of £5,000, you could jump onto the property ladder with a £5k Deposit mortgage.

Why choose a £5k Deposit mortgage?

Small deposit

You only need to put down a minimum of £5,000 as a deposit.

Fixed interest rate

For the first 5 years of your mortgage your interest rate will be fixed. Giving you the peace of mind that your interest rate won’t change.

Get on the property ladder sooner

With only needing a low deposit, the £5k Deposit mortgage helps first-time buyers buy a property without having to save longer.

What is a £5k Deposit mortgage?

£5k Deposit mortgage explained

From 18 May 2026, if you have £5,000 saved up, you can use this as your mortgage deposit and borrow more than 95% of your home’s value. For first-time buyers, this could help you get on the property ladder sooner.

Let's break it down

Are you a first-time buyer?

The £5k Deposit mortgage can help first-time buyers. You may qualify if:
 
  • the property value is no more than £300,000
  • you have a deposit of £5,000
  • you are borrowing between £97,000 and £295,000
  • the property isn’t a Buy to Let, remortgage or help to buy scheme.

Things to consider

While there are benefits to a £5k Deposit mortgage, it may not be right for everyone. Here are a few things to think about before you apply.

  • Higher Loan to Value (LTV) ratio may lead to higher rates.
  • Larger monthly repayments than if you had a bigger deposit.
  • Risk of negative equity if the property value drops. 
  • You may be able to get a better mortgage interest rate if you have a larger deposit.

How to apply for a £5k Deposit mortgage?

Available from 18 May 2026

How much could you borrow?

Use our mortgage calculator to get an idea of how much you could borrow, see current interest rates and compare monthly payments.

Mortgage calculator

Agreement in principle (AIP)

An AIP can help you understand how much you might be able to borrow. The final amount will depend on your full mortgage application when you're ready to buy your home.

It's useful to have an AIP before you start viewing properties, so you know what’s in your price range.

Agreement in principle

Make an offer on a home

With your AIP in place, you can start looking for a property. Search online or visit estate agents, book a few viewings and find your new home.
Once you’ve found the right property, it’s time to make an offer.

Making an offer

Apply for your mortgage

Once you have your AIP and the offer on your new home accepted, you can then apply for your mortgage. We’ll guide you through the process from start to finish.

Applying for your mortgage

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

Let's take a closer look

  • From 18 May 2026

    • At least one applicant will need to be a first-time buyer.
    • You will need to have a deposit of at least £5,000 (not a gifted deposit).
    • The property will need to be your only place of residence. A £5k Deposit mortgage can’t be used for a Buy to Let property.
    • The property value should be no more than £300,000 and no less than £102,000.
    • The mortgage is a repayment mortgage.
    • The property can’t be bought with help to buy schemes, such as shared equity, shared ownership or Right to Buy.
    • The £5k Deposit mortgage is not available for new build properties, new build conversions or property renovations.

    Once you apply, we will complete further checks which can include a credit check, and we may request details of your income and any outgoings.

  • We will offer £5k Deposit mortgages on properties worth up to £300,000. This means you may be able to borrow up to £295,000. 

    As a responsible lender, we make mortgage offers tailored to you, based on various factors. This includes your credit score and how much you can afford to repay each month.

  • You may be able to get a £5k Deposit mortgage on most types of properties.

    However, the offer does exclude:

    • new build homes
    • he property must be your only home
    • the property can’t be part of a shared ownership scheme, shared equity, Right to Buy, or buy to let schemes
    • the £5k Deposit mortgage is not available for new build properties, new build conversions or property renovations.

  • 5% of the property asking price is usually the smallest deposit you can pay in the UK.

    For first-time buyers, the £5k Deposit mortgage can help you to take that step onto the property ladder with a lower deposit.

    If you can save a bigger deposit, you could get a lower mortgage interest rate. 

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