For many first-time buyers, the dream of homeownership often feels just out of reach, particularly when faced with the daunting task of saving for a substantial deposit. However, recent developments in the mortgage market are offering a glimmer of hope. Yorkshire Building Society has introduced an innovative mortgage option that allows buyers to secure a home with just a £5,000 deposit. As experts in financial services, we at Percom Financial Services are here to break down this scheme and address key questions that potential buyers might have.

Can you get a mortgage with a £5,000 deposit?

Yes, you can. The new mortgage option from Yorkshire Building Society allows first-time buyers to secure a mortgage with a deposit as low as £5,000. This scheme is designed to help those who may struggle to save for a larger deposit, providing a pathway to homeownership that was previously difficult to access. The mortgage covers up to 99% of the property’s value, making it one of the most accessible options currently available in the market.

How does the £5,000 deposit work?

The £5,000 deposit works by allowing buyers to put down a minimal amount upfront while borrowing the remaining value of the property, up to 99%. This significantly reduces the barrier to entry for first-time buyers. However, it’s important to note that this scheme comes with specific conditions and requirements:

  • The property must not be a flat or a new-build.
  • Buyers must pass rigorous affordability and credit checks.
  • The mortgage offers a five-year fixed interest rate of 5.99%.

This means that while the deposit requirement is low, the overall cost of borrowing and monthly repayments may be higher than traditional mortgages with larger deposits.

What is the £5,000 deposit scheme in the UK?

The £5,000 deposit scheme is a mortgage product offered by Yorkshire Building Society aimed at helping first-time buyers get on the property ladder. It is tailored for individuals who might not have substantial financial support from their families and are finding it challenging to save for a typical deposit. The scheme allows buyers to purchase homes valued up to £500,000 with just a £5,000 deposit, provided they meet the necessary affordability and credit criteria.

This scheme is particularly appealing as it removes one of the biggest obstacles for first-time buyers: the deposit. Traditional mortgage products usually require a minimum deposit of 10%, which can be a significant amount of money, especially in higher-priced property markets. By reducing the deposit requirement to £5,000, the scheme opens up opportunities for a broader range of buyers.

Benefits and Considerations


  • Accessibility: The primary benefit of this scheme is that it makes homeownership more accessible to those who may not have a large amount of savings.
  • Fixed Interest Rate: The five-year fixed interest rate of 5.99% provides stability and predictability in monthly mortgage payments.


  • Interest Rates: While the scheme offers low entry costs, the interest rate is relatively high compared to other mortgage products. Buyers should consider their long-term financial plan and potential interest rate changes.
  • Property Restrictions: The scheme does not apply to flats or new-build properties, which may limit options for some buyers.
  • Negative Equity Risk: With a high loan-to-value ratio, there is a greater risk of falling into negative equity if property values decrease.


The £5,000 deposit mortgage scheme represents a significant shift in the UK mortgage market, offering a lifeline to first-time buyers struggling to save for a large deposit. While it provides an exciting opportunity, it’s crucial for buyers to fully understand the terms and potential implications. At Percom Financial Services, we are committed to guiding you through the complexities of the mortgage market and helping you make informed decisions. If you have any questions or need personalised advice, please do not hesitate to contact us. Together, we can make your dream of homeownership a reality.