Yes, it’s possible to get a mortgage with a 5% deposit in the UK. In fact, the UK government has launched several initiatives in recent years to help first-time buyers with smaller deposits get onto the property ladder.
It’s important to note that lenders will still need to conduct their ‘responsible affordability assessments’ to ensure that borrowers can ‘afford to repay the mortgage’.
Even if you can afford the monthly payment, lenders still need to factor in lots of other bits and bobs to show they’re being ‘responsible lenders’.
The interest rates on 95% mortgages are normally a fair bit higher than 90% mortgages and borrowers may need to pay mortgage insurance to protect the lender in case of default.
