Facebook Summary: Thinking of buying your first home but worried about the deposit? A 95% mortgage could be your way onto the property ladder with just a 5% stake. Here is everything you need to know about buying in 2026 and how we can help you find the right deal!
Let’s be honest: saving for a house feels a bit like trying to fill a bucket with a hole in the bottom. You save a bit, house prices move a bit, and suddenly that "dream home" feels a few years further away.
If you’re a first-time buyer in 2026, you’ve probably heard people talking about the "good old days" of government schemes and help-to-buy incentives. While some of those schemes, like the Mortgage Guarantee Scheme, officially wound down in mid-2025, the dream of owning your own home isn't over. In fact, for many people in Oldham and across the UK, 95% mortgages are still the most realistic way to grab those keys.
At Hunter Capital, we’re all about making the complex stuff simple. So, let’s break down exactly how you can buy a home this year with just a 5% deposit.
What Exactly is a 95% Mortgage?
In the industry, we call this a "High LTV" (Loan to Value) mortgage. All it really means is that you provide 5% of the property's price as a deposit, and the bank or building society lends you the other 95%.
For example, if you’re looking at a lovely terrace in Oldham for £200,000:
- Your 5% Deposit: £10,000
- The Mortgage: £190,000
Compare that to a 10% or 20% deposit, where you’d need £20,000 or £40,000 upfront. For most of us, saving £10k is a mountain; saving £40k feels like climbing Everest without a coat.
The 2026 Landscape: Is it Harder Now?
You might have read that the government’s 95% mortgage guarantee scheme ended in June 2025. While that’s true, don't panic. That scheme was designed to encourage lenders to offer 95% deals when they were feeling a bit nervous.
In 2026, the market has matured. Many lenders now offer 95% products because they want your business, not just because the government is backing them. However, because the government "safety net" is gone, lenders are a bit more selective. They’ll look closer at your credit score and your "affordability", basically, a deep dive into whether you can comfortably manage the monthly payments.
This is where working with a mortgage broker like Hunter Capital becomes a game-changer. We can see which lenders are currently "appetised" for 5% deposits and which ones might turn you away.
The Pros and Cons of Going Small (Deposit-Wise)
We’re all about being straight with you. 95% mortgages are a fantastic tool, but they aren’t perfect for everyone.
The Perks:
- Get in Sooner: You can stop paying your landlord’s mortgage and start paying your own years earlier than if you waited to save a 10% or 15% deposit.
- Keep Some Cash: It’s better to have a 5% deposit and £5,000 in the bank for furniture and "emergencies" (like a leaky boiler) than to spend every penny on a 10% deposit and move into an empty house.
- Build Equity: If property prices in your area rise, you’re building "equity" (the portion of the home you actually own) much faster than if you were still saving in a bank account.
The Trade-offs:
- Higher Rates: Generally, the less you put down, the higher the interest rate. Lenders see 95% loans as "riskier," so they charge a bit more for the privilege.
- Negative Equity Risk: If house prices were to drop suddenly, and you only own 5% of the house, you could end up owing the bank more than the house is worth. This only really matters if you need to sell quickly, but it’s something to keep in mind.
Simple Tips for Saving Your 5% Deposit
Even a 5% deposit is a chunk of change. Here is how our most successful first-time buyers are hitting their targets in 2026:
- The Lifetime ISA (LISA): If you’re under 40, this is basically free money. For every £4,000 you save towards your first home, the government adds £1,000. If you’re buying with a partner, you can both have one.
- The "Subscription Audit": We all have them. That gym you don’t go to, the three different streaming services, the premium apps. Cutting £50 a month doesn't sound like much, but over two years, that's £1,200 towards your deposit.
- Automate Your Savings: Set up a standing order to move your savings the day you get paid. If you wait until the end of the month to see "what’s left," the answer is usually "nothing."
- Gifted Deposits: Many parents or grandparents are stepping in to help with that 5%. Lenders are perfectly happy with this, as long as it’s a gift and not a loan that needs to be paid back.
Why You Need a Broker in 2026
The mortgage market is huge. There are over 1,000 products out there, and if you just walk into your local high street bank, you’re only seeing a tiny fraction of them.
When you come to Hunter Capital, we do the heavy lifting for you. We have access to a massive range of lenders, some of whom don't even deal directly with the public. We don't just find a "yes"; we find the most cost-effective "yes" available for your specific situation.
Whether you're looking for a standard first-time buyer mortgage or you’re interested in something more niche like Sharia finance, we can guide you through the maze.
The Step-by-Step Path to Your First Home
- The Check-up: Get your credit report in order. Use apps like Experian or ClearScore to see where you stand.
- The Conversation: Request a free consultation with us. We’ll tell you exactly how much you can borrow so you don't waste time looking at houses out of your price range.
- The Agreement in Principle (AIP): We’ll get you a document from a lender that says, "Yes, we’ll probably lend to this person." Sellers love this, it shows you’re a serious buyer.
- The Hunt: Go out and find that dream home!
- The Application: Once your offer is accepted, we handle the formal mortgage application, the paperwork, and the back-and-forth with the lender.
- The Keys: Once the solicitors (conveyancers) finish their work, you get the keys.
Frequently Asked Questions
Can I get a 95% mortgage with a "meh" credit score?
It’s tougher, but not impossible. In 2026, some specialist lenders are more forgiving of a missed phone bill from three years ago than the big banks. Give us a shout, and we can look at your specific report.
Do I need extra money for fees?
Yes! Don’t forget about stamp duty (though first-time buyers often get relief), solicitor fees, and survey costs. Budget an extra £2,000 to £3,000 on top of your deposit to be safe.
Can I use a 95% mortgage for a Buy-to-Let?
No, 95% mortgages are almost exclusively for people living in the property. If you're looking to invest, you’ll usually need at least a 20-25% deposit. You can check out our guide to buy-to-let mortgages here.
Ready to stop renting?
Buying your first home is one of the biggest things you’ll ever do. It’s exciting, terrifying, and a bit confusing all at once. But you don't have to do it alone.
At Hunter Capital, we’ve helped hundreds of people in Oldham and throughout the UK move from "saving" to "sold." We keep things simple, we cut through the jargon, and we’re here to make sure you get the best start possible on your homeownership journey.
Don't let a small deposit hold you back. Book your free mortgage consultation today and let’s see what’s possible for you in 2026.