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Can you buy a house with a £5k deposit? Your options as a first-time buyer
Yes, you can buy a house with a £5k deposit, but what it buys depends on the mortgage. On a standard 95% mortgage, £5,000 is the deposit for a £100,000 home. A handful of lenders now accept £5,000 on more expensive homes through 98% to 100% mortgages, and shared ownership stretches it further again. Here are your realistic options as a first-time buyer, and the costs £5k won't cover.
Updated on 17 September 2026 with current lender deals, government schemes and stamp duty rules.
At a 5% deposit
£100,000
The home price £5,000 covers on a standard 95% mortgage
Highest loan to value
98–100%
Offered by a few lenders, with strict criteria and price caps
No stamp duty for first-time buyers up to
£300,000
In England and Northern Ireland, then 5% on the part up to £500,000
Lifetime ISA bonus, up to
£1,000 a year
25% on savings of up to £4,000 a year, for homes up to £450,000
We are not tax advisers. Stamp duty figures in this article are general illustrations based on the rates published at the time of writing, not a guarantee of what you will pay. Your solicitor or conveyancer will confirm the amount due, and you should take advice from a qualified tax adviser on your own circumstances.
How much house can a £5k deposit buy?
The smaller the deposit percentage a lender accepts, the more house £5,000 can secure. The mortgage covers the rest, and how much you can borrow depends on your income.
| £5,000 as a… | Home price | Mortgage needed | Where you'd find it |
|---|---|---|---|
| 10% deposit | £50,000 | £45,000 | Most lenders |
| 5% deposit | £100,000 | £95,000 | 95% mortgages from many lenders |
| 2% deposit | £250,000 | £245,000 | 98% deals, such as Lloyds and Halifax (homes up to £300,000) |
| 1% deposit | £500,000 | £495,000 | Accord's 99% deal (homes up to £500,000) |
| 5% of a 25% shared ownership share | £400,000 full value (your share £100,000) | £95,000 | Shared ownership, plus rent on the 75% you don't own |
| 10% of a 25% shared ownership share | £200,000 full value (your share £50,000) | £45,000 | Shared ownership lenders asking for 10% |
| 5% of a First Homes price | £100,000 after a 30% discount (market value about £142,900) | £95,000 | First Homes in England, where available |
Illustrative figures only. They ignore fees and other costs, and every lender applies its own affordability and property checks.
The home price a £5,000 deposit could cover
By deposit percentage, and with shared ownership
£5k deposit mortgages available in 2026
Several lenders have launched deals built around a £5,000 deposit, or no deposit at all, aimed at renters who can afford the monthly payments but struggle to save. Here are the main ones in September 2026.
| Mortgage | Maximum loan to value | Price limit | Key conditions |
|---|---|---|---|
| Lloyds and Halifax £5,000 deposit mortgage | About 98% | £300,000 | First-time buyers, 5-year fix, your own savings (no gifted deposit), no new builds or shared ownership |
| Accord (Yorkshire Building Society) £5k Deposit Mortgage | 99% | £100,001 to £500,000 | First-time buyers, 5-year fix, existing houses and flats, no new builds |
| Skipton Track Record mortgage | 100% | Up to £600,000 | 12 months of rent paid on time in the last 18 months, no home owned in the last 3 years, 5-year fix |
| April Mortgages no deposit mortgage | 100% | Check with a broker | 10- or 15-year fixes only, strong credit, broker only |
| 95% mortgages, including the mortgage guarantee scheme | 95% | £600,000 under the scheme | Widely available to first-time buyers and movers across the UK |
Santander's My First Mortgage goes to 98% but needs a deposit of at least £10,000. All of these carry lender-specific income multiples (often up to about 4.5 times income), credit and property rules. Products and criteria change often: these were available at the time of writing, are not a recommendation, and may have changed or been withdrawn.
Is there a government £5k deposit mortgage scheme?
No. The "£5k deposit mortgages" above are lenders' own products. The government's version is the mortgage guarantee scheme, sometimes called Freedom to Buy. It was made permanent in July 2025 and backs 91% to 95% mortgages on homes costing £600,000 or less, so the minimum deposit is 5% of the price rather than a fixed £5,000.
Schemes that make £5k go further
Shared ownership
Buy a share, rent the rest
You buy 10% to 75% of a home, usually at least 25%, and pay rent on the rest. The deposit is typically 5% to 10% of your share. Household income must be £80,000 or less (£90,000 in London). Homes are leasehold, and rent and service charges add to your monthly costs.
First Homes (England)
30% to 50% off new homes, if you can find one
First-time buyers earning up to £80,000 (£90,000 in London) can buy at a discount, with a price after discount of no more than £250,000 (£420,000 in London). You need a mortgage for at least half the price. Supply is very limited, as national planning rules no longer require developers to include First Homes.
Lifetime ISA
Grow your £5k with a 25% bonus
If you're 18 to 39, you can save up to £4,000 a year and the government adds up to £1,000. The home must cost £450,000 or less, and you must buy at least 12 months after your first payment. Withdraw for anything else and you lose 25%. The government plans to replace it with a First-Time Buyer ISA, but existing accounts carry on. See our Lifetime ISA guide.
Own New (new builds)
Builder money towards your deposit or rate
Own New's Deposit Drop uses a housebuilder's incentive to help you buy a new build with a 5% deposit, while Rate Reducer uses it to lower your rate for the initial fix. You own the whole home. Read more on our Own New page. The similar Deposit Unlock scheme closed to new completions in April 2026.
Can family help if £5k isn't enough?
Often, yes. Family help can raise your deposit, your borrowing or both:
- Gifted deposit. A relative gives money towards your deposit, confirmed in a gift letter. Most lenders accept it, though the Lloyds £5,000 deposit deal doesn't. See gifted deposits and other sources of deposits.
- Joint borrower sole proprietor. A family member joins the mortgage to boost affordability without going on the deeds. Read our joint borrower sole proprietor guide.
- Family savings as security. Some lenders let a relative place savings in a linked account for a set period instead of you putting down a larger deposit.
Other costs: £5k isn't the whole budget
The deposit is only part of the cash you need. Budget for these too, and check whether a deal with no fees suits you better than a lower rate with a fee.
| Cost | Typical amount | Notes |
|---|---|---|
| Conveyancing (solicitor) | Around £1,500 including searches and VAT | HomeOwners Alliance average; varies with price and tenure |
| Survey | From about £400 for a RICS Level 2 | Optional but worth it; more for older or larger homes |
| Lender valuation and arrangement fees | Often £0 to £1,000+ | Many first-time buyer deals have no product fee; fees can sometimes be added to the loan |
| Stamp duty (England) | £0 up to £300,000 | First-time buyers pay 5% on £300,001 to £500,000; no relief above £500,000 |
| Moving costs | A few hundred pounds upwards | Removals or van hire, plus furniture and basics |
| Broker fee | £0 with Quick Mortgages | Some brokers charge; always ask |
We are not tax advisers. Stamp duty figures in this article are general illustrations based on the rates published at the time of writing, not a guarantee of what you will pay. Scotland (Land and Buildings Transaction Tax) and Wales (Land Transaction Tax) have their own rules. Your solicitor or conveyancer will confirm the amount due, and you should take advice from a qualified tax adviser on your own circumstances.
Rates on 95% mortgages compared with 90%
A smaller deposit usually means a higher rate. At the start of August 2026, Moneyfacts put the average 2-year fix at 6.20% at 95% loan to value, against 5.84% at 90%. The gap has a real cost on a typical first-time buyer home:
95% mortgage (£10,000 deposit)
£1,164
A month: £190,000 borrowed at 6.20% over 30 years
90% mortgage (£20,000 deposit)
£1,061
A month: £180,000 borrowed at 5.84% over 30 years
Illustrative repayment figures using Moneyfacts average 2-year fixed rates, assuming the rate stayed the same for the whole term. Deals at 98% to 100% are often priced higher again.
With the Bank of England holding Bank Rate at 3.75% on 17 September 2026 and three of its nine rate-setters voting for a rise, rates could move either way before you buy. Our latest mortgage rates update has the detail. Borrowing at a very high loan to value also leaves little room if prices fall, which can make remortgaging harder when your fix ends.
What lenders look for at 95% and above
Get these in shape before you apply
- Clean credit. High loan-to-value deals usually need a strong record with no recent missed payments. Check your report first: see why your credit score matters.
- Affordability. Stable income, modest debts and spending that leaves room for the payment if rates rise.
- Rent history. Some deals, like Skipton's, are built on proof you've paid rent on time. Keep bank statements that show it.
- Your own savings. Some £5k deposit deals won't accept a gifted deposit, so lenders will check where the money came from.
- The property. Many high loan-to-value deals exclude new builds, flats, shared ownership or non-standard construction, or cap the price.
How to buy with a £5k deposit: step by step
- Work out your full budgetAdd the deposit to the other buying costs in the table above, and keep a small buffer.
- Check your credit fileFix errors, register on the electoral roll and avoid new credit before you apply.
- Gather proofPayslips, bank statements showing your savings and rent payments, and ID.
- Get an agreement in principleA broker can match you to lenders whose criteria and price caps fit before a credit search is run.
- Choose a property that fits the dealCheck whether your lender accepts the property type, such as a flat or new build, before you offer.
- Apply and instruct a solicitorOur mortgage timeline guide shows what happens next.
£5k deposit mortgage FAQs
Can you buy a house with a £5k deposit?
Yes. It's a 5% deposit on a £100,000 home with most lenders, or it can cover more expensive homes with a 98% or 99% £5k deposit mortgage, or through shared ownership. You still need to pass affordability and credit checks.
What is a £5k deposit mortgage?
A lender's product that sets the minimum deposit at £5,000 rather than a percentage. Lloyds and Halifax offer one on homes up to £300,000, and Accord offers one on homes up to £500,000.
Can I get a 5% deposit mortgage as a first-time buyer?
Yes. 95% mortgages are widely available, and the government's permanent mortgage guarantee scheme supports them on homes costing up to £600,000.
Is there a 100% mortgage in the UK?
Yes, a few. Skipton's Track Record mortgage uses your rent history instead of a deposit, and April Mortgages offers 100% on long fixed rates. Criteria are strict and you still need cash for fees.
Do first-time buyers pay stamp duty?
In England and Northern Ireland, not on the first £300,000. You pay 5% on the part between £300,001 and £500,000, and the relief doesn't apply above £500,000.
We are not tax advisers. Stamp duty figures in this article are general illustrations based on the rates published at the time of writing, not a guarantee of what you will pay. Your solicitor or conveyancer will confirm the amount due, and you should take advice from a qualified tax adviser on your own circumstances.
Is it better to wait and save a bigger deposit?
Not always. A bigger deposit usually means a lower rate, but saving takes time while you pay rent and prices may rise. An adviser can compare both routes using your figures.
Find out what your £5k could buy
£5,000 can be enough, but the right route depends on your income, credit record, where you want to live and the type of property.
Quick Mortgages is a whole-of-market broker based in Birmingham, helping first-time buyers across the UK, with no broker fees. We can check which £5k deposit mortgages and schemes you qualify for before you apply. See our first-time buyer mortgages or try our mortgage search tool.
Sources
- Lloyds Banking Group, "Lloyds to launch new £5,000 deposit mortgage", press release, 12 May 2026
- Accord Mortgages, £5k Deposit Mortgage product criteria, September 2026
- Skipton Building Society, Track Record mortgage eligibility, September 2026
- April Mortgages, No Deposit mortgage (broker information), September 2026
- Santander, My First Mortgage, 2026
- GOV.UK, 2025 Mortgage Guarantee Scheme; Shared ownership: who can apply; First Homes scheme; Lifetime ISA; Stamp Duty Land Tax residential rates
- MoneySavingExpert, Lifetime ISA replacement update, 23 June 2026
- Own New and Deposit Unlock scheme websites, September 2026
- HomeOwners Alliance, conveyancing fees and survey costs guides, 2026
- Moneyfacts, UK Mortgage Trends Treasury Report, August 2026
- Bank of England, Monetary Policy Summary, 17 September 2026
Correct on 17 September 2026 and may change.
Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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