A 5% deposit means borrowing 95% of the purchase price. It can reduce your cash target, but only if a lender will offer the larger loan and the repayments fit your budget.
What to check
- The loan you actually need, your income, spending, credit record and the property.
- The interest rate and fees at both deposit sizes. Less deposit can mean more expensive borrowing.
- Money for buying costs and a buffer after you move.
A smaller deposit gives you less protection if the property’s value falls. You could owe more than the home is worth.
The government’s Mortgage Guarantee Scheme supports participating lenders offering 91–95% loan-to-value (the mortgage as a percentage of the property price) mortgages. It protects part of the lender’s losses; it does not guarantee your approval or pay your deposit.
Sources and conditions
Checked 25 October 2026. Rules and product availability can change; check the original information before acting.
HM Treasury · Mortgage Guarantee Scheme ↗MoneyHelper · Mortgage affordability ↗GOV.UK · How to buy a home ↗MoneyHelper · Applying for a mortgage ↗Test this against your own budget.
A route only helps if its deposit, ongoing costs and conditions work for your circumstances. Start with your income and commitments.
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