Can I buy a house with a 5% deposit in the UK

Scott Harrison • April 10, 2026

If you are wondering “can I buy a house with a 5% deposit?”, the simple answer is yes. Many lenders in the UK offer mortgages with just a 5% deposit, making it possible for buyers to get onto the property ladder sooner.


At Harmony Mortgages in New Milton, we regularly help clients across Barton on Sea, Milton on Sea and Highcliffe secure mortgages with smaller deposits, guiding them through the process from start to finish.


What Is a 5% Deposit Mortgage?


A 5% deposit mortgage means you only need to contribute 5% of the property’s value upfront, with the remaining 95% covered by your lender.


For example:


  • Property price: £200,000
  • 5% deposit: £10,000
  • Mortgage required: £190,000


This type of mortgage is commonly referred to as a 95% loan-to-value (LTV) mortgage.


Who Can Get a 5% Deposit Mortgage?


While 5% deposit mortgages are widely available, lenders will assess your financial situation carefully before approving your application.


You are more likely to be accepted if you:


  • Have a stable income
  • Have a good credit history
  • Can demonstrate affordability
  • Have low existing debt


Buyers in areas like New Milton and Highcliffe often benefit from speaking to a local mortgage broker, such as Harmony Mortgages, to ensure they meet lender criteria before applying.


Pros of Buying With a 5% Deposit


For many buyers, especially first-time buyers, a 5% deposit can be the quickest way to purchase a home.

Key advantages include:


  • Getting onto the property ladder sooner
  • Lower upfront savings required
  • Opportunity to stop renting and start building equity


This can be particularly appealing in coastal areas such as Barton on Sea or Milton on Sea, where demand for property remains strong.


Things to Consider With a 5% Deposit


While a smaller deposit can help you buy sooner, there are some important factors to be aware of:


  • Higher interest rates compared to larger deposit mortgages
  • Higher monthly repayments
  • Fewer mortgage deals available
  • Stricter affordability checks


Because of this, it is important to ensure a 5% deposit mortgage is the right option for your long-term financial situation.


Are There Any Schemes to Help?


There are several schemes and options that may support buyers with smaller deposits:


  • Mortgage Guarantee Scheme (government-backed support for 95% mortgages)
  • Lifetime ISA (25% government bonus on savings)
  • Shared Ownership (buy a share of a property)


Harmony Mortgages can help you understand which of these options may be suitable if you are buying in New Milton or nearby areas such as Highcliffe.


Is It Better to Wait and Save More?


This is a common question. While saving a larger deposit can give you access to better mortgage rates, waiting is not always the best option for everyone.


You may want to consider:


  • Current property prices in New Milton and the surrounding areas
  • How much rent you are currently paying
  • How quickly you can realistically save more
  • Your long-term plans


For some buyers in Barton on Sea or Milton on Sea, buying sooner with a 5% deposit makes more financial sense than waiting.


How Harmony Mortgages Can Help


At Harmony Mortgages, we provide clear, honest advice to help you decide whether a 5% deposit mortgage is right for you.


Supporting clients across New Milton, Highcliffe, Barton on Sea and Milton on Sea, we can:


  • Assess your eligibility
  • Compare 95% mortgage deals
  • Help improve your chances of approval
  • Guide you through the full application process

Our goal is to make the process as straightforward and stress-free as possible.


Speak to a Mortgage Expert in New Milton


So, can you buy a house with a 5% deposit? In many cases, yes, but the right approach depends on your personal circumstances.


If you are considering buying a home in New Milton or nearby areas such as Barton on Sea, Milton on Sea or Highcliffe, Harmony Mortgages is here to help.


Get in touch today to speak with a local mortgage expert and take the next step towards owning your home.


Contact Us

Your Complete Guide to Mortgages in New Milton: Expert Advice from Harmony Mortgages

By Scott Harrison • April 10, 2026
If you are looking for mortgage advice in New Milton or the surrounding areas, finding the right guidance can make all the difference. Whether you are a first-time buyer, moving home, or remortgaging, Harmony Mortgages offers expert, tailored support to help you secure the best deal for your circumstances. Based in New Milton, Hampshire, Harmony Mortgages works closely with clients across the local area, including Barton on Sea, Milton on Sea and Highcliffe, providing trusted, straightforward mortgage advice. Why Local Mortgage Advice Matters Choosing a mortgage is one of the biggest financial decisions you will make. Working with a local mortgage broker in New Milton means you benefit from advice that understands both your personal situation and the local property market. Areas such as Barton on Sea and Highcliffe have their own unique property trends, from coastal homes to family houses and retirement properties. A local broker like Harmony Mortgages can guide you through these nuances, helping you make informed decisions. Mortgages for First-Time Buyers in New Milton Getting onto the property ladder can feel overwhelming, especially with rising house prices and changing lending criteria. Harmony Mortgages specialises in helping first-time buyers in New Milton and nearby areas such as Milton on Sea understand their options. Key support includes: Explaining how much you can borrow Helping you understand deposit requirements Accessing competitive mortgage rates Guiding you through the full application process With expert advice, first-time buyers can avoid common pitfalls and move forward with confidence. Remortgaging: Are You Paying Too Much? Many homeowners stay on their lender’s standard variable rate without realising they could save money. If you already own a property in New Milton, Barton on Sea or Highcliffe, it may be time to review your mortgage. Harmony Mortgages can help you: Secure a better interest rate Reduce your monthly repayments Release equity for home improvements Consolidate existing debts Regular mortgage reviews ensure you are always on the most suitable deal for your needs. Moving Home in the New Milton Area If you are planning to move within New Milton or relocate to nearby areas such as Milton on Sea, having the right mortgage in place is essential. Harmony Mortgages provides support with: Porting your existing mortgage Finding a new mortgage deal Managing timelines between buying and selling Navigating affordability assessments This ensures your move is as smooth and stress-free as possible. Buy-to-Let Mortgages for Local Investors The coastal appeal of areas like Barton on Sea and Highcliffe makes them attractive for property investors. If you are considering a buy-to-let mortgage in New Milton or the surrounding area, professional advice is key. Harmony Mortgages can help you: Understand rental yield potential Access buy-to-let mortgage products Structure your investment efficiently Meet lender criteria With demand for rental properties remaining strong in Hampshire, this can be a smart long-term investment when done correctly. Why Choose Harmony Mortgages? Harmony Mortgages is committed to providing clear, honest and personalised advice. As a New Milton-based mortgage broker, the team understands the needs of local buyers, homeowners and investors. Clients across New Milton, Milton on Sea, Barton on Sea and Highcliffe choose Harmony Mortgages because of: Access to a wide range of lenders Tailored mortgage solutions Friendly, professional service Support from enquiry to completion Get Expert Mortgage Advice in New Milton Today  Whether you are buying your first home, remortgaging or investing in property, getting the right advice early can save you time and money. Harmony Mortgages is here to help clients across New Milton and nearby areas such as Barton on Sea, Milton on Sea and Highcliffe find the right mortgage solution. Get in touch today to speak with a local mortgage expert and take the next step towards your property goals.

How much deposit do I need for a mortgage in the UK?

By Scott Harrison • April 10, 2026
How Much Deposit Do I Need for a Mortgage in the UK? One of the most common questions buyers ask is: how much deposit do I need for a mortgage in the UK? Whether you are a first-time buyer or looking to move home in New Milton, understanding deposit requirements is key to planning your next step. At Harmony Mortgages, based in New Milton, Hampshire, we help clients across the local area, including Barton on Sea, Milton on Sea and Highcliffe, understand exactly what is needed to secure a mortgage and get onto the property ladder. What Is a Mortgage Deposit? A mortgage deposit is the upfront amount you pay towards the purchase of a property. The rest of the property price is covered by your mortgage lender. For example, if you are buying a home for £250,000 and have a 10% deposit, you would contribute £25,000, with the remaining £225,000 funded by a mortgage. Minimum Deposit for a Mortgage in the UK In the UK, the minimum deposit is typically 5% of the property value. This is often referred to as a 95% loan-to-value (LTV) mortgage. Here is a simple breakdown: 5% deposit – Minimum requirement for many lenders 10% deposit – More mortgage options available 15% to 20% deposit – Access to better interest rates 25%+ deposit – Typically the most competitive deals If you are looking to buy in areas such as New Milton or Barton on Sea, where property values can vary, understanding these percentages helps you set realistic savings goals.\ Why a Bigger Deposit Can Save You Money While it is possible to buy with a 5% deposit, putting down a larger amount can significantly reduce your monthly repayments and overall borrowing costs. Benefits of a larger deposit include: Lower interest rates Reduced monthly payments More lender choice Increased chance of approval For buyers in Highcliffe or Milton on Sea, where coastal properties can command higher prices, even a slightly larger deposit can make a noticeable difference. Saving for a Mortgage Deposit Saving for a deposit can feel like a challenge, but there are several ways to build it up more quickly: Regular monthly savings plans Lifetime ISA (government bonus of 25%) Gifts from family members Equity from an existing property Harmony Mortgages regularly supports clients in New Milton and surrounding areas by helping them understand how lenders view different types of deposits, including gifted deposits. Can I Get a Mortgage With a Small Deposit? Yes, it is possible to secure a mortgage with a small deposit, particularly with 5% deposit mortgage schemes. However, lending criteria can be stricter. Lenders will also look closely at: Your income and affordability Credit history Employment status Existing financial commitments If you are unsure where you stand, speaking to a mortgage broker in New Milton, such as Harmony Mortgages, can help you understand your options clearly. First-Time Buyers: What Should You Aim For? If you are a first-time buyer in New Milton, Barton on Sea or Highcliffe, aiming for at least a 10% deposit can open up more favourable mortgage deals. However, every situation is different. Some buyers are ready sooner with a 5% deposit, while others choose to wait and save more to access better rates. Harmony Mortgages provides tailored advice to help you decide what is right for your circumstances. How Harmony Mortgages Can Help Understanding how much deposit you need is just the first step. Harmony Mortgages offers expert, personalised support to guide you through the entire process. Working with clients across New Milton, Milton on Sea, Barton on Sea and Highcliffe, we help you: Understand your borrowing potential Find suitable mortgage products Navigate lender requirements Secure the best deal for your situation Speak to a Local Mortgage Expert Today If you are asking “how much deposit do I need for a mortgage in the UK?”, the answer depends on your individual circumstances and goals. Harmony Mortgages is here to help you take the next step with confidence. Whether you are just starting to save or ready to apply, our team provides clear, practical advice tailored to you.  Get in touch today to speak with a local mortgage expert in New Milton and start your journey towards owning your home.