5% Deposit Mortgage: What You Need to Know
A 5% deposit (95% LTV) mortgage is the minimum most UK lenders offer. Here's what it means for your monthly payments and total costs.
Calculate your exact figures
Open calculator with these valuesWith a 5% deposit on a £250,000 property, you put down £12,500 and borrow £237,500 at 95% LTV.
Higher LTV means higher interest rates. At 95% LTV, expect rates around 5.0–6.0% compared to 4.0–4.5% at 75% LTV. On a £237,500 mortgage at 5.5% over 25 years, monthly payments would be approximately £1,460.
Total interest over the term: roughly £200,000 — highlighting why building a larger deposit or overpaying early can save substantial sums.
Key considerations for 5% deposit mortgages:
Many first-time buyers start at 95% LTV. Even small overpayments can quickly improve your LTV position, unlocking better rates at remortgage time.
Run Your Own Numbers
These figures are based on typical rates. Use our calculator with your actual mortgage details for precise projections.
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