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Mortgage Providers with 5 Percent Deposit

The best mortgage deals generally only exist for people who can put down at least a 40 percent deposit. It is possible, however, to get a mortgage with 5 percent deposit. Most mortgage deals expect a minimum of 10 percent deposit but finding the additional cash to make up another 5 percent won't be as difficult as saving up for a 40 percent down payment.

 

Loughborough Building Society

Loughborough are currently offering a 10 percent mortgage rate for customers buying a home in the post code areas LE, DE and NG only. Although it's not a mortgage with 5 percent deposit the actual deal is better than most on the market; the interest rate is an average of 4 percent with a discount for three years. The rate is variable so could change with current Bank of England rates.

 

Post Office Mortgage

Another alternative mortgage with 5 percent deposit is the Post Office 10 percent deposit mortgage product. The rate is fixed, which is particularly good if you don't have the income required to stretch to build up a deposit, because you won't have to worry about increased fees each year with inflation.

 

Chorley District and Building Society

At two years fixed interest rate, Chorley District offers a 90 percent - or lower - loan for all its mortgage products. The interest rate stands at 5.25 percent for two years but is subject to change after the introductory period. Chorley District does charge a fee for the mortgage, which works out at 1 percent of the total value borrowed, so you could be looking at paying a higher fee if you intend to borrow a lot.

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