First-Time Buyer Mortgage Solutions: How a Low Deposit Can Help You Secure Your New Home

Anonymous Customer Overview: Young Couple in the UK Exploring First-Time Mortgages

A young professional couple based in the UK recently reached out to us at Deal Direct looking for guidance on buying their first home. The main applicant is seeking to purchase a new property solely in their spouse’s name, with hopes of securing a mortgage using just a 5% deposit.

Main Challenges: Navigating First-Time Buyer Mortgages With a Low Deposit

• Low Deposit Requirement: The couple had saved up a 5% deposit and wanted to understand if this would be sufficient to secure a mortgage for a home purchase.
• Single Applicant Mortgage: The mortgage was to be in the wife’s name only, prompting questions about application processes and necessary documentation.
• Maximum Borrowing: They were keen to learn how much they might be able to borrow based on current bank lending policies, given their household income.
• Unfamiliar With the Process: As first-time buyers, they needed straightforward, easily explained guidance on eligibility, next steps, and potential costs.

Our Mortgage Solution: Flexible Options With Just 5% Deposit

At Deal Direct, we specialise in helping first-time buyers—especially those working with small deposits—find competitive mortgage products. For this couple, we explained that several UK lenders offer 95% loan-to-value mortgages (meaning you need just a 5% deposit).

• Borrowing Limits: Most lenders use a multiple of the applicant’s annual income (typically 4.5x to 5x the individual salary) to calculate the maximum loan amount. For example, with a household income of £45,000, a potential mortgage of up to approximately £200,000 could be possible, depending on additional factors like credit rating and outgoings.
• Process Transparency: To keep the application on track and offer accurate quotes, we advised we would need to speak directly with the wife, and have documents ready such as proof of income, deposit, and ID.
• Guided Application Process: We reassured the couple that our experienced broker team can walk both applicants through every step, from initial affordability checks to final approval.

Did You Know?

You don’t have to wait until you’ve saved a large deposit—many mainstream UK banks and building societies now offer 95% mortgages for first-time buyers with good credit!

Customer Outcome: Confidence to Move Forward With Their Dream Home

• Clear understanding of deposit requirements and lending criteria
• Personalised support and guidance on next steps, making the process much less daunting
• Reassurance that competitive mortgages are accessible even with a 5% deposit
• Confidence to move at their own pace, knowing we’ll be ready to assist as soon as they find the right property

Testimonial From the Call:

“First time… I just talk over, and I save your number, and I go with you guys.”

This simple feedback shows how comfortable our customers feel after an initial conversation with our advisers.

Frequently Asked Questions (FAQs)

How much can I borrow with a 5% deposit as a first-time buyer?

Most UK lenders allow up to 95% loan-to-value for first-time buyers with a good credit record. The exact amount depends on the applicant’s income (typically 4.5x–5x annual salary) and overall financial health.

Can I put the mortgage in just one person’s name?

Yes, you can apply for a mortgage in just one person’s name even if married. The named applicant’s income, credit score, and eligibility will be assessed individually.

What documents are needed to start a mortgage application?

• Proof of identity (passport, driving licence)
• Recent payslips or proof of income
• Bank statements
• Proof of deposit (savings account statements, gifted deposit letter if applicable)

Can I get a mortgage with just a 5% deposit?

Yes. Several banks and building societies in the UK offer 95% mortgages for qualifying first-time buyers, subject to standard lending criteria and a good credit profile.

Does the lender need to speak to the actual applicant?

Yes. For privacy and regulatory reasons, lenders must directly communicate with the person applying for the mortgage, especially before any credit checks or formal application steps are taken.

Ready to Make Your First Move? Contact Us Today!

If you want more information about 95% mortgages or would like a personalised recommendation, contact our friendly mortgage advisers today. The right support can put your first home within reach sooner than you think!