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From 1st April 2021


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We really have missed you and we are hoping your release date of the 1st April 2021 isn’t a cruel April Fools.


If you are looking to get onto the property ladder and only have a small deposit, then a 95% mortgage could be your lifeline.  It means that you will need to have a deposit of at least 5%.   There are risks associated with a higher loan to value (LTV) mortgage and your Mortgage Adviser will explain these to you.


Under the new scheme a first time buyer or home mover will be able to purchase a home with a low deposit of 5% under the new Government backed scheme.

Keith's update on the new scheme

Can I get a 5% deposit Mortgage?

Yes, but only if you use the new Government backed scheme.

Who can apply for a 95% Mortgage or a 5% deposit Mortgage?

The scheme will be open to:



The mortgage will work in the same way as any normal mortgage.  Acceptance is not guaranteed and is subject to full underwriting, affordability, credit status and the property type.  You can improve your chances of success by reading our get mortgage ready guide.

Am I eligible for a 95% Mortgage?

Anyone who fits the lenders standard criteria can access the Government backed scheme.  The scheme is NOT restricted to first time buyers.


The important point to consider is not can you use the scheme but are you eligible for a mortgage.  This is why using a Mortgage Broker is so important, we know the market and after assessing your financial position will be able to make a recommendation to you.


  • You must be buying a main residence in the UK – This means the scheme is not available to second home or buy to let properties


  • The property value must be less than £600,000


  • You must have a deposit of at least 5% - If you were looking to purchase a property valued at £150,000 you would need at least £7,500 of your own money


  • You can put down a minimum deposit of 5%, or if you have the ability, a maximum of 9% to take advantage of this deal


  • You can only apply for a capital repayment mortgage – You can not use the scheme for an interest only mortgage. You can only apply if you are taking a mortgage where your payments represent capital and interest each month.


  • You will need to meet the lenders criteria – The application process is exactly the same as a standard mortgage.  You must pass the lenders standard credit, affordability checks etc

How long will the scheme last?

The Government backed 95% mortgage scheme will come into force on the 1st April 2021 and run until December 2022.

Not quite ready to apply?

Give our calculators a whirl

How much can I borrow?

  • Click here

Ever wondered how much you could borrow? Use our easy mortgage calculator to see how much you may be able to borrow

How much Stamp Duty

  • Click here

Will I pay stamp duty? How much stamp duty is due?  Our stamp duty calculator may answer your question

Mortgage Payments

  • Click here

Our mortgage payment calculator will give you an idea of how much your monthly repayment could be

Where did 5% deposit Mortgages go?

Since the onset of the CoVID pandemic mortgage lending has been increasingly difficult to secure.  The number of 5% and 10% mortgages dried up for the best part of summer 2020 and have made a painfully slow return.


Under the new scheme the UK Government (as a worst case scenario) will support the lender if they are unable recover their costs due to the borrower failing to keep up their mortgage repayments.


It is hoped that this scheme will encourage lenders to reintroduce higher loan to term mortgages to help those wanting to purchase property for the first time or move home, who don’t have more than a 5% deposit.

Is a 95% Mortgage a good idea?

A 95% loan to value mortgage is designed to help people with a low deposit.  Although a low deposit mortgage means more people with smaller savings can get onto the property ladder, there are risks associated with them.  We would always recommend saving as much as you can towards your deposit.


If you can save more towards your deposit you could:


  • Get a better rate – monthly interest rates are subject to loan to value.  The higher the loan to value, the more expensive the interest rate.


  • A higher risk for negative equity – If the housing market was to drop you would be at a higher chance of experiencing negative equity as the margin between your loan and the equity in your property is small.


  • Your repayment may be higher – The more you borrow the higher the repayments are.


  • You may have to take a longer mortgage term – This means you will be in debt for longer and will pay more interest over the mortgage term.  If you had a higher deposit you could, potentially, reduce the mortgage term.


Hello Mortgage Limited is registered in England and Wales. Registered Office: Suite 20, Cookson House, River Drive, South Shields, Tyne & Wear, NE33 1TL. Company Number: 10414170. DPA number ZA332902


Hello Mortgage Limited is an Appointed Representative of MyInfinity Finance  Limited which is authorised and regulated by the Financial Conduct Authority 672182.

VAT Reg no: 347344491


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