95% mortgages in Leeds
Only got 5% deposit ?
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Saving a deposit is the single hardest part of buying a home for most people, especially in Leeds where rents make it tough to put money aside. The good news is that you do not always need a huge deposit to get started. A 95% mortgage lets you buy with just 5% of the price saved, and for a lot of buyers that is the difference between waiting years and moving this year.
This page explains what a 95% mortgage is, how a 5% deposit works in practice, the government scheme that supports low-deposit lending, and the honest pros and cons. No jargon and no pressure, just a clear picture. And if you would like someone to look at your situation, our mortgage advisers in Leeds are here to help.
What is a 95% mortgage?
A 95% mortgage is simply a mortgage where you borrow 95% of the property’s value and put down the remaining 5% as your deposit. The 95% figure is the loan-to-value, or LTV, which is the proportion of the price you are borrowing. So on a £200,000 home, a 95% mortgage means a £10,000 deposit and £190,000 borrowed.
Low-deposit mortgages like this all but disappeared for a while, but they are widely available again today, both directly from lenders and with the support of a government scheme. They are especially popular with first-time buyers, though they are not only for first-time buyers.
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Can you get a mortgage with a 5% deposit?
Yes. Many high-street lenders offer 95% mortgages in their standard range, and others do so with the backing of the government’s mortgage guarantee scheme. Either way, from your point of view it works like any other mortgage: you apply, the lender checks that the payments are affordable for you, and if all is well you buy your home. The main things a lender looks at are your income and outgoings, your credit history and the property itself.
The mortgage guarantee scheme (Freedom to Buy)
The government’s mortgage guarantee scheme, made permanent in July 2025 under the Freedom to Buy banner, encourages lenders to offer 95% mortgages by covering part of their risk if a borrower cannot keep up repayments (GOV.UK). It is currently available on properties worth up to £600,000, and you do not have to be a first-time buyer to use it.
You do not apply for the scheme separately. You simply apply for a 95% mortgage with a participating lender, and the guarantee sits quietly in the background. It is worth knowing that many lenders offer their own 95% deals outside the scheme too, so the sensible approach is to compare the whole market rather than fixate on the scheme itself. That is exactly what an adviser does for you.
How much deposit do you actually need?
For a 95% mortgage, 5% of the purchase price is the floor. On a £200,000 home that is £10,000; on a £250,000 home, £12,500. It is worth remembering that 5% is the minimum, not the target: the bigger your deposit, the lower your LTV, and the better the interest rate you are likely to be offered. If you can stretch to 10%, your monthly payments will usually be noticeably lower. You will also need a little extra set aside for costs such as surveys and legal fees.
The pros and cons of a 95% mortgage.
A 95% mortgage can be a great way onto the ladder, but it is only fair to be clear about both sides:
- •Pro: you can buy sooner, rather than spending more years renting and saving.
- •Pro: you start building equity and benefiting from any rise in your home’s value.
- •Con: interest rates on 95% mortgages are usually higher than on lower-LTV deals, so the monthly cost is more.
- •Con: with only 5% equity, there is a greater risk of negative equity if house prices fall, meaning you owe more than the home is worth.
- •Con: the choice of deals is narrower than at lower LTVs, so shopping around matters more.
How to boost your chances with a small deposit
A few things make a real difference when your deposit is on the smaller side:
- •Check your credit file and put right anything that is wrong, so a lender sees you at your best (MoneyHelper).
- •Save a little more if you can, even reaching 10% widens your options and improves the rate.
- •If you are saving toward a first home, a Lifetime ISA adds a 25% government bonus to what you put in, within the rules (GOV.UK).
- •A gifted deposit from family is usually acceptable to lenders, with the right paperwork.
- •Avoid taking on new credit in the months before you apply.
How our Leeds mortgage advisers can help
Feel Good Financial has been advising buyers across Leeds and Yorkshire since 2012, and in 2025 we arranged more than £251 million in mortgage lending. Protecting your new home matters to us too, and 85% of the mortgages we arranged that year had a protection policy in place. We know the local market and we work with buyers getting onto the ladder with modest deposits all the time.
When you speak to one of our advisers, we look at your deposit, your income and your plans, then compare 95% deals from across the market, including scheme-backed and standard options, to find the one that genuinely fits. We explain the trade-offs in plain English, help you budget for the full cost of buying, and handle the paperwork. No jargon, no hard sell, just clear help getting you into your first, or next, home.
Got a 5% deposit and wondering if you can buy?
Book a free, no-obligation chat with one of our Leeds advisers. We will look at your options across the market, explain the schemes that could help, and tell you honestly where you stand.
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95% mortgage FAQs
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Yes. A 95% mortgage is designed for exactly that, letting you buy with 5% of the price saved. The lender will still check the payments are affordable for you, and a larger deposit would improve your rate, but 5% is enough to get started with many lenders.
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No. First-time buyers use them most, but home movers can use 95% mortgages too, including those supported by the government’s mortgage guarantee scheme. Your circumstances and the lender’s criteria decide what is available to you.
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Under the government scheme the property must be worth £600,000 or less, and it must be one you intend to live in. Outside the scheme, individual lenders set their own limits. An adviser can tell you what applies to your situation.
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Usually yes, a little. Lending at 95% carries more risk for the lender, so rates tend to be higher than at lower LTVs. The upside is that you can buy sooner, and you can often remortgage to a better rate later once you have built up more equity.
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Freedom to Buy is the name given to the government’s permanent mortgage guarantee scheme, which supports 95% lending. You do not apply for it directly; you apply for a 95% mortgage and, if the lender uses the scheme, the guarantee works in the background.
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Important Information:
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Changes in interest rates may affect your monthly repayments. Ensure you understand the terms and risks before proceeding, There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £695 for a purchase application and £300 for a remortgage.