With a 95% mortgage, the lender loans you 95% of the purchase price and you provide the remaining 5% as a deposit.

For example, if you’re buying a home valued at £200,000, you would need £10,000 upfront, and the mortgage would cover the remaining £190,000.

These mortgages can be offered through standard products or supported by government schemes designed to help first time buyers in Leeds with smaller deposits.

Either way, they reduce the amount you need to save while still allowing you to become a homeowner.

The key difference with 95% mortgages is the level of risk for the lender. Because the deposit is smaller, the lender has less equity in the property to fall back on. That’s why some lenders apply stricter criteria or offer higher interest rates with this type of product.

Who Can Apply for a 95% Mortgage?

These mortgages are typically aimed at first time buyers or home movers with strong credit histories and stable income.

Some lenders also allow gifted deposits, which means you might be able to use a financial gift from a close family member as part or all of the 5% deposit.

Lenders will still carry out affordability checks, assess your income, and look at your credit profile in detail.

Even though you’re only putting down a small deposit, you still need to show that you can manage the repayments.

If your income is steady and your spending is under control, you may find that you’re eligible even with a modest deposit.

Are 95% Mortgages Still Available?

Yes, they are.

Many high street and specialist lenders continue to offer 95% mortgages, although availability can change depending on market conditions and economic outlook.

Some lenders withdrew these products temporarily when rates rose sharply, but we’re now seeing more providers reintroduce them as confidence begins to return.

As a mortgage broker, we have access to up-to-date lender criteria and can quickly identify which providers are currently offering 95% deals and what terms apply.

Can a 95% Mortgage Be Used With a Government Scheme?

Yes, in many cases. Some lenders offer 95% mortgages through government-backed support, while others provide them independently.

For example, products that were part of the Mortgage Guarantee Scheme allowed lenders to offer 95% deals with government backing.

While that scheme has now ended, some lenders have continued to support the 95% model on their own terms.

In some cases, you may also combine a 5% deposit mortgage with schemes like First Homes or Shared Ownership, depending on the structure of the deal and eligibility criteria.

Is It Right for Everyone?

A 95% mortgage can make homeownership more accessible, but it’s important to weigh up the long-term costs.

Because you’re borrowing more compared to your deposit, monthly payments may be higher than with a larger deposit.

You may also find that interest rates are slightly less competitive.

We’ll help you compare what’s available and explain what the monthly costs would look like, so you can make an informed decision based on your budget and goals.

For some buyers, saving a little longer to reach a 10% deposit opens up more choice and lower rates.

For others, moving sooner with 5% down is the better option, especially if property prices are rising.

Date Last Edited: January 5, 2026