Dreaming of your first home? Discover how a £5,000 mortgage deposit could open the door to homeownership
Read on to discover an exciting opportunity for first-time buyers.
One of our trusted Lenders has just launched a new £5k deposit mortgage designed specifically for first-time buyers. This innovative product allows you to purchase a house or flat valued at up to £500,000 by putting down just a £5K deposit. With this option, you can finally take that important step onto the property ladder without needing a large upfront sum.
How much does a £5K deposit mortgage cost?
The following table shows the key financial figures associated with this £5k deposit mortgage for first-time buyers. The numbers assume a 30-year term with a 5-year fixed mortgage rate of 5.79% and are based on total joint income requirements, assuming there are no other debts or dependent costs:
| Purchase Price | Deposit | Mortgage | Mortgage Payments | Income Needed |
| £500,000 | £5,000 | £495,000 | £2,870 pcm | £110,000 |
| £350,000 | £5,000 | £345,000 | £2,029 pcm | £77,000 |
| £300,000 | £5,000 | £295,000 | £1,739 pcm | £67,000 |
| £250,000 | £5,000 | £245,000 | £1,449 pcm | £56,000 |
In addition to the monthly payments, it’s important to consider the other costs involved when purchasing your first property. The table below outlines the additional financial requirements, including stamp duty, purchase costs, and the total cash needed:
| Purchase Price | Deposit | Stamp Duty | Purchase Costs | Total Cash |
| £500,000 | £5,000 | £10,000 | £2,000 | £17,000 |
| £350,000 | £5,000 | £2,500 | £2,000 | £9,500 |
| £300,000 | £5,000 | £0 | £2,000 | £7,000 |
| £250,000 | £5,000 | £0 | £2,000 | £7,000 |
Stamp Duty Land Tax (SDLT) calculations assume that the buyer is a first-time buyer after 1st April 2025 in England and Wales. The purchase costs shown are estimated to cover legal fees and Broker costs.
£5k Deposit Mortgage Key Details
Below are some of the key features of this attractive £5k deposit mortgage for first-time buyers:
- Mortgage rate 5.79% fixed – this means the interest rate on your mortgage is set at 5.79% for the fixed period (5 years). You’ll know exactly how much you’ll be paying each month during that time, with no surprises from rate increases.
- Free valuation – When you decide on a property, the Lender will assess its value at no cost to you. This valuation helps ensure the property is worth the price you’re paying and is a requirement for the mortgage.
- No Mortgage Product Fees – You won’t have to pay any extra charges or fees specifically for choosing the £5k deposit mortgage. This keeps your upfront costs lower and makes the process more affordable.
- Minimum purchase price £100,001 – If you’re looking at homes below this price, this particular mortgage product wouldn’t be available.
- Maximum purchase price £500,000 – The £5k deposit mortgage is capped for properties costing up to £500,000.
Do I qualify for a £5,000 deposit mortgage?
This mortgage is a specialised product that will only be offered to first-time buyers who can demonstrate a strong credit profile. To be eligible for this £5k deposit mortgage, you should typically have:
- Minimum outstanding debts
- No missed or late payments on credit
A strong credit profile is key to securing this £5k deposit mortgage. Your credit profile is essentially a record of how reliably you’ve managed your finances in the past, and lenders use it to predict your future financial behaviour.
This means maintaining a good credit score, keeping your debt levels low, and ensuring that all your bills and repayments are made on time can significantly improve your chances of approval. If you’re a first-time buyer, we recommend reviewing your credit report before applying so that any issues can be addressed in advance.
Our team is here to help you understand your credit profile and offer guidance on how to strengthen it, ensuring you’re in the best position to take advantage of this £5k deposit mortgage product.
Other requirements for £5K deposit mortgage
In addition to the credit profile requirement, there are a few other criteria you must meet to qualify for a £5k deposit mortgage as a first-time buyer:
- At least one applicant must be a first-time buyer
- The maximum age allowable at the end of the term is 70. This means the mortgage needs to be fully paid off by the time the youngest applicant turns 70. For example, if you’re looking to secure a 30-year mortgage, you must be no older than 40 right now.
- All applicants must have an indefinite right to reside in the UK
- No new build property, pre-existing houses and flats only
Your £5K mortgage deposit
It is important to note that your £5,000 deposit must be available in cash, which can be held in a bank account or through other investments, including a Lifetime ISA (LISA). Borrowing money to fund the deposit is not permitted. However, if you receive a deposit gift from a close family member, this is acceptable and can help you meet the deposit requirement.
What to expect from the mortgage application process
Navigating the mortgage application process for a £5k deposit mortgage is easier than you might think. First, you’ll begin by discussing your financial situation with us, where we’ll review your income, credit history, and any existing debts.
Once we’ve determined your eligibility, we’ll help you gather all the necessary documents, such as proof of income, bank statements, and identification. The next step involves completing a straightforward £5k deposit mortgage application, after which the lender will assess your credit profile and arrange a free valuation of your chosen property.
Throughout the process, we’re here to guide you every step of the way, ensuring that the journey towards securing your first home is as smooth and stress-free as possible.
Ready to take the next step with a £5k deposit mortgage?
If you’re a first-time buyer dreaming of owning your own home but have been held back by high deposit requirements, now is your chance to make that dream a reality. This new £5k deposit mortgage is designed to help you get on the property ladder with ease. With competitive rates, minimal upfront costs, and clear eligibility guidelines, you could be one step closer to securing your first home.
Contact us today for a no-obligation consultation and find out how you can take advantage of this breakthrough mortgage product. Let’s work together to help you start your journey towards home ownership.