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With a 5% deposit mortgage, you only need to put down 5% of the property’s value as a deposit. You then borrow the remaining 95% - this is your mortgage. That’s why they’re also called 95% loan to value (LTV) mortgages.
If the home you want to buy is £200,000, this means you’ll need a deposit of at least £10,000 (5%). The other £190,000 (95%) is then covered by your mortgage.
Low deposit options like 95% mortgages are perfect for first-time buyers who are struggling to save a larger deposit. But they can also help homeowners who want to move.
You only need to put down a minimum of 5% of the property's value as a deposit.
By reducing the need for a larger deposit, you could secure your new home sooner rather than later.
Some of our 5% deposit mortgages offer up to £2,000 cashback to help with moving and settling in.
Not everyone offers 5% deposit mortgages on brand new homes - but we do.
You may be wondering if a 95% mortgage is the right choice for you or whether you should wait until you have a bigger deposit. Here are a few things to consider before you decide:
Your home may be repossessed if you do not keep up repayments on your mortgage.
Our 5% deposit mortgages come with different benefits and features for you to choose from.
Compare rates and see what your monthly payments might look like.
End Date
Reversion Rate
Benefits
Early Repayment Charges
2.5% of amount repaid until 31/07/2027, followed by 1.5% of amount repaid until 31/07/2028 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
3.5% of amount repaid until 31/07/2027, followed by 2.5% of amount repaid until 31/07/2028, followed by 1.5% of amount repaid until 31/07/2029 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
5.5% of amount repaid until 31/07/2027, followed by 4.5% of amount repaid until 31/07/2028, followed by 3.5% of amount repaid until 31/07/2029, followed by 2.5% of amount repaid until 31/07/2030, followed by 1.5% of amount repaid until 31/07/2031 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
3.5% of amount repaid until 31/07/2027, followed by 2.5% of amount repaid until 31/07/2028, followed by 1.5% of amount repaid until 31/07/2029 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
2.5% of amount repaid until 31/07/2027, followed by 1.5% of amount repaid until 31/07/2028 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
5.5% of amount repaid until 31/07/2027, followed by 4.5% of amount repaid until 31/07/2028, followed by 3.5% of amount repaid until 31/07/2029, followed by 2.5% of amount repaid until 31/07/2030, followed by 1.5% of amount repaid until 31/07/2031 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
5.5% of amount repaid until 31/07/2027, followed by 4.5% of amount repaid until 31/07/2028, followed by 3.5% of amount repaid until 31/07/2029, followed by 2.5% of amount repaid until 31/07/2030, followed by 1.5% of amount repaid until 31/07/2031 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
3.5% of amount repaid until 31/07/2027, followed by 2.5% of amount repaid until 31/07/2028, followed by 1.5% of amount repaid until 31/07/2029 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
2.5% of amount repaid until 31/07/2027, followed by 1.5% of amount repaid until 31/07/2028 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
2.5% of amount repaid until 31/07/2027, followed by 1.5% of amount repaid until 31/07/2028 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
3.5% of amount repaid until 31/07/2027, followed by 2.5% of amount repaid until 31/07/2028, followed by 1.5% of amount repaid until 31/07/2029 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
2.5% of amount repaid until 31/07/2027, followed by 1.5% of amount repaid until 31/07/2028 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
5.5% of amount repaid until 31/07/2027, followed by 4.5% of amount repaid until 31/07/2028, followed by 3.5% of amount repaid until 31/07/2029, followed by 2.5% of amount repaid until 31/07/2030, followed by 1.5% of amount repaid until 31/07/2031 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
End Date
Reversion Rate
Benefits
Early Repayment Charges
5.5% of amount repaid until 31/07/2027, followed by 4.5% of amount repaid until 31/07/2028, followed by 3.5% of amount repaid until 31/07/2029, followed by 2.5% of amount repaid until 31/07/2030, followed by 1.5% of amount repaid until 31/07/2031 plus interest to the date of redemption. Following the above period, interest will be charged to the date of redemption. You can make overpayments below £1,000 each calendar month without incurring early repayment charges.
*Initial estimated monthly payments are calculated based on the figures entered above on a capital and interest repayment basis.
**For owner occupier mortgages, the actual variable rate applied will be based on the value of your property relative to the outstanding mortgage balance (this is known as the Loan to Value (LTV)). However, this rate will never be higher than the Society’s Standard Variable Rate at that time. For further details about what happens to your interest rate when your mortgage offer period ends, click here.
We’ll instruct a mortgage valuation. This is for our own use only. The cost of the valuation is set out in the product features. Where you feel you need more information about the property including its condition, there are three additional types of survey available to you: Home Survey Level 1 (Previously known as a Condition Report), Level 2 (Previously known as a Home Buyers’ Survey) and Level 3 (Previously known as a Building Survey). You’ll need to decide which level is best for you. For further details please visit rics.org
Representative example
A mortgage of £240,000 payable over 35 years initially on a fixed rate for two years at 5.74% and then on our current standard variable rate of 6.24% (variable) for the remaining 33 years would require an initial payment of £2,496.83, 25 monthly payments of £1,326.81 and 394 monthly payments of £1,404.46.
The total amount payable would be £589,587.90 made up of the loan amount plus interest (£348,963.90), a completion fee (£499) and an account management fee (£125 - paid upon redemption).
The overall cost for comparison is 6.4% APRC representative.
This representative example assumes mortgage payments are made on the 1st day of a calendar month.
The above representative example is for illustration purposes only and may vary depending on your personal circumstances.
A 5% deposit mortgage is a mortgage where you only need to put down 5% of the property’s value as a deposit. You then borrow the remaining 95% from a lender. This is why you’ll also see it called a 95% loan to value (LTV) mortgage.
It all depends on your circumstances. If you’re struggling to save up a larger deposit, a 95% mortgage can be a way to get on the property ladder sooner. But it does mean you’ll be paying a higher interest rate compared to other mortgages with a lower loan to value (LTV). Generally, the more you save as a deposit, the lower your monthly repayments will be.
5% deposit mortgages can help first time buyers or homeowners who want to move.
There’s other criteria you’ll generally need to meet to get a mortgage, and it can differ from lender to lender. To find out if you can apply for a 95% mortgage with the West Brom, read our mortgage eligibility page.
No. While they’re popular amongst first-time buyers, 5% deposit mortgages are generally available to people moving home as well.
While there are benefits to a 5% deposit mortgage, there are a few things to consider:
Whether you have a question or are ready to take the first step, we're happy to help.
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