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95% mortgages or 5% deposit mortgages - for first time buyers and others with low deposits

Finding the right mortgage comes down to a number of different factors, one of which is how much of a deposit you have to put down. Deposits can vary substantially. Some people will have at least half the value of the property ready to go, whereas others might be ready to take their first step on the ladder having saved up that precious initial five per cent.

Five per cent deposit mortgages (otherwise known as 95% LTV mortgages) are often used by those seeking to get onto the property ladder as soon as they can. Five per cent is generally the minimum deposit required to secure a mortgage. Of course, that doesn’t mean they’re entirely limited to first-timers, sometimes those who have owned a home previously and now wish to get back onto the property ladder may also have a more modest deposit.

There are definite pluses to taking out a five per cent deposit mortgage. It enables you to access the highest property levels possible with the money you have - meaning you may be able to obtain that dream home: the one that you really want.

5 per cent deposit / 95 per cent LTV mortgages can, of course, vary substantially in terms of cost. It may be possible, for instance, to take out a five per cent mortgage using a £20,000 deposit if the home was worth £400,000. Of course, if you're taking your first step onto the ladder and planning to purchase a £100,000 flat, then you'll only need to put down a £5,000 deposit.

It’s worth bearing in mind that 95 per cent LTV mortgages will often have higher interest rates than products requiring a larger deposit. However, our skilled, experienced mortgage consultants will discuss this with you as part of the process, and will help explain how interest rates work.

Why should you choose Ipswich Building Society as your mortgage lender?

  • We work alongside our borrowers to ensure that each individual is given the mortgage that really suits them. We will get to know you properly before making a recommendation.

  • It may be cheaper than your monthly rental payment – it’s always best when making these types of decisions to speak to an independent financial adviser.

  • We are an independent mutual mortgage lender. That means that we don't have any shareholders. Every decision we make is done so with our members in mind.

  • We have over 160 years of experience in the mortgage sector. Whatever your situation might be, we can work with you to achieve the best possible outcome.

  • We don't use computers to make our lending decisions - all applications are reviewed by our expert mortgage consultants.

If you’d like to find out whether a five per cent deposit mortgage is right for you, then give us a call today on 0330 123 0773.


Your home may be repossessed if you do not keep up repayments on your mortgage.