Compare 5% Deposit Mortgages For First Time Buyers

Compare the best 5% deposit mortgages for first time buyers side by side and see which of the 95% mortgage deals available will charge you the best interest rates and the lowest fees so you can make the right choice. We make it easy to find the 5 percent deposit mortgages for first time buyers that best suit your circumstances.
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HSBC 2 Year 4.79% Fixed Help to Buy
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%4.79% fixed
until 31 Jul 2016
3.94%4.2% APR
 
Clydesdale Bank 3 Year 4.89% Fixed + Cashback
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%4.89% fixed
until 30 Jun 2017
4.95%5.1% APR
Available for first time buyers only.
 
Post Office 2 Year 4.95% Fixed Help to Buy Guarantee
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%4.95% fixed
until 31 May 2016
4.49%4.7% APR
 
Chelsea Building Society 2 Year 5.19% Fixed Branch Only
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.19% fixed
until 31 Jul 2016
5.65%5.7% APR
Available for first time buyers and in branch only.
 
HSBC 5 Year 5.19% Fixed Help to Buy
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.19% fixed
until 31 Jul 2019
3.94%4.6% APR
 
Yorkshire BS Flexi 2 Year 5.19% Fixed Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.19% fixed
until 31 Jul 2016
4.99%5.2% APR
Available in branch only.
 
Yorkshire BS Flexi 2 Year 5.19% Fixed Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.19% fixed
until 31 Jul 2016
4.99%5.2% APR
Available for first time buyers and in branch only.
 
Post Office 5 Year 5.35% Fixed Help to Buy Guarantee
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.35% fixed
until 31 May 2019
4.49%5.0% APR
 
Chelsea Building Society Flexi 2 Year 5.39% Fixed Offset Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.39% fixed
until 31 Jul 2016
5.65%5.8% APR
Available for first time buyers and in branch only.
 
Yorkshire BS Flexi 2 Year 5.39% Fixed + Cashback Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.39% fixed
until 31 Jul 2016
4.99%5.2% APR
Available in branch only.
 
Yorkshire BS Flexi 2 Year 5.39% Fixed Offset Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.39% fixed
until 31 Jul 2016
4.99%5.2% APR
Available in branch only.
 
Yorkshire BS Flexi 2 Year 5.39% Fixed Offset Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.39% fixed
until 31 Jul 2016
4.99%5.2% APR
Available for first time buyers and in branch only.
 
Aldermore 2 Year 5.43% Fixed Help to Buy Guarantee
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.43% fixed
for 24 months
5.73%-
 
Aldermore 2 Year 5.48% Fixed Family Guarantee
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
100%5.48% fixed
for 24 months
5.73%-
 
Yorkshire BS Flexi 5 Year 5.49% Fixed Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.49% fixed
until 31 Jul 2019
4.99%5.4% APR
Available in branch only.
 
Yorkshire BS Flexi 2 Year 5.59% Fixed + Cashback Offset Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.59% fixed
until 31 Jul 2016
4.99%5.2% APR
Available in branch only.
 
Aldermore 3 Year 5.68% Fixed Family Guarantee
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
100%5.68% fixed
for 36 months
5.73%-
 
Yorkshire BS Flexi 5 Year 5.69% Fixed + Cashback Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.69% fixed
until 31 Jul 2019
4.99%5.4% APR
Available in branch only.
 
Yorkshire BS Flexi 5 Year 5.69% Fixed Offset Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.69% fixed
until 31 Jul 2019
4.99%5.5% APR
Available in branch only.
 
Yorkshire BS Flexi 5 Year 5.89% Fixed + Cashback Offset Branch
Maximum LTVInitial RateSubsequent RateOverall Cost for Comparison
95%5.89% fixed
until 31 Jul 2019
4.99%5.5% APR
Available in branch only.
 

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

We provide an independent comparison service free of charge but we may receive a commission from some of the companies we refer you to. These are displayed with blue product names.

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How to find the best 5% deposit mortgages for first time buyers

As a first time home buyer 5% of the value of the house you want might be the most you can save for a deposit. Our guide lets you know how to make your deposit go as far as possible.

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As you might expect, first time buyers mortgages are easier to apply for successfully if you have a large deposit. But if you want to get on the property ladder as soon as possible, you might need to look at what 5 percent mortgages for first time buyers are available.

The loan to value (LTV) ratio is the percentage of your new property’s value you will need to borrow from a mortgage provider, so if you’ve saved a 5% deposit, your LTV will be 95%. You’ll find a better choice of mortgages with decent interest rates with an LTV lower than 95%.

Having said that, there are an increasing number of lenders willing to offer 5% mortgages for first time buyers.

What to look for in a first time buyer mortgage 5% deposit

The interest rate on your mortgage is important, as the amount you pay each month will depend greatly on this, as well as the amount you borrow but there are some other factors to consider as well.

Mortgage type

Most of the deals you’ll find with a 95% LTV are likely to be fixed rate mortgages, including some offset mortgages too.

Repayment or Interest Only

The monthly payments on repayment mortgages cover the interest due and reduce the balance until it’s paid off. With an interest only mortgage, you just pay the interest, then separately arrange to raise the capital to pay off the balance at the end of the term. Our guide explains the pros and cons of both options. However, the offers you find with a 5% deposit will most likely be for repayment mortgages.

Fees & charges

Make sure you check the terms and conditions for any charges or extra fees, and take these into account when you get you head around how much the mortgage will cost. With a 5% deposit, a higher lending charge might apply, which providers use to cover the increased risk of offering mortgages with a high LTV.

Finally, you’ll need to make sure you’re eligible for the mortgage before you apply. Some mortgages will only be available if you meet certain criteria or if you’re an existing borrower or customer. Applying for a mortgage you can’t have will waste your time and possibly affect your credit rating.

How to compare 5% deposit mortgages for first time buyers

Our 5% first time buyer mortgage comparison will help you work out what products are out there with a 95% LTV. You’ll need to check the terms and any charges or fees, and then find the best interest rate.

Further help

Our guide on how to get your first mortgage lets you know what you need to consider. If your first time buyer deposit isn’t enough to find a good mortgage deal, try looking into the Help to Buy scheme. Our guide lets you know how it works.

Mortgages Comparison