How To Get A Mortgage With A 5% Deposit
Not all lenders offer 5% deposit mortgages (95% LTV) and those that do have set criteria to determine whether they are happy to lend on this basis.
The good news is that in recent years a number of lenders have relaxed their criteria for this type of lending. Things to be mindful of include:
- Lenders will charge you a higher rate on interest on your mortgage if you only have a 5% deposit. If you can get your deposit up to 10% this will help get the cost of borrowing down.
- While some lenders will be happy to lend if you have a 5% deposit, their decision to lend will be based on affordability criteria so factors such as your income, previous credit record and the amount you wish to borrow.
Latest mortgage offers:
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Many lender websites have useful information on getting a mortgage for the first time or where you have a low deposit. See some of the links above or check out the Post Office for information on 5% deposit mortgage deals.