How Much Can I Borrow With a £5000 Deposit?
Short answer: a £5000 deposit can be enough to buy a property around £100000, assuming you meet income and affordability requirements.
However, the deposit alone does not determine how much you can borrow. Lenders also assess your income, credit history, and monthly commitments before confirming what is affordable.
This guide explains what a £5000 deposit can realistically achieve, how lenders assess small deposits, and what limits you are likely to face.
What Does a £5000 Deposit Mean to Lenders?
A £5000 deposit usually represents a 5% deposit.
That means:
- Property value of £100000
- Mortgage of £95000
- Loan to value (LTV) of 95%
Most lenders offering 95% mortgages apply stricter affordability and credit checks because the lender is taking on more risk.
How Much Can I Borrow With a £5000 Deposit?
Your income sets the borrowing limit, not the deposit.
Most lenders use income multiples of:
- 4 to 4.5 times income in standard cases
Example scenarios
- Income £25000 → potential borrowing £100000–£112500
- Income £30000 → potential borrowing £120000–£135000
Even with a £5000 deposit, borrowing is capped by affordability. If your income does not support the mortgage size, the application will be declined.
Why Deposit Size Still Matters
A smaller deposit reduces lender choice.
With a £5000 deposit:
- Fewer lenders are available
- Interest rates are usually higher
- Affordability stress tests are stricter
A larger deposit often unlocks better rates and more flexibility, but a £5000 deposit can still be workable in the right circumstances.
What Income Do I Need With a £5000 Deposit?
Income and deposit must align.
If you are buying at £100000 with a £5000 deposit:
READY TO GET STARTED?
Make a mortgage enquiry with Mortgage Bridge
If this guide relates to your situation, you can make a quick mortgage enquiry and we’ll be in touch to understand what you’re looking to do and how we can help.
Make a mortgage enquiry →No obligation. Mortgage Bridge acts as a mortgage introducer.
- Mortgage required: £95000
- Typical income needed: £21000–£24000, depending on outgoings
If the property price is higher, the income requirement increases accordingly.
Can I Borrow More Than 95% With a £5000 Deposit?
In most cases, no.
95% is typically the maximum loan to value available on standard residential mortgages. Borrowing above this level is extremely limited and usually not available through mainstream lenders.
How Credit History Affects Small Deposit Mortgages
Clean credit is especially important at high LTVs.
With a £5000 deposit, lenders are more cautious. Applications are stronger when:
- There are no recent missed payments
- There are no defaults or CCJs
- Credit balances are well managed
If there are historic credit issues, options may still exist, but:
- Lender choice is more limited
- A larger deposit may be required
What Outgoings Can Reduce Borrowing?
Monthly commitments directly reduce affordability.
Common examples include:
- Car finance
- Personal loans
- Credit cards
- Student loan deductions
At 95% LTV, lenders are less flexible, so even modest commitments can significantly reduce borrowing.
Can First-Time Buyers Use a £5000 Deposit?
Yes, many do.
A £5000 deposit is most commonly used by:
- First-time buyers
- Buyers purchasing lower-value properties
- Applicants with stable income and clean credit
Some lenders also allow gifted deposits, provided the gift is non-repayable and properly declared.
Can I Buy a More Expensive Property With a £5000 Deposit?
Only if income allows and LTV limits are met.
For example:
- £5000 deposit on a £125000 property = 4% deposit
- This usually falls outside lender criteria
To buy higher-priced properties, increasing the deposit is often necessary.
What Are the Monthly Repayments Like?
Monthly payments depend on interest rate and term.
Indicative repayments on a £95000 mortgage:
- Over 25 years: low to mid hundreds per month
- Over 30 years: lower monthly cost, higher total interest
Lenders also check whether repayments remain affordable if interest rates rise significantly.
Are There Any Extra Costs to Budget For?
Yes. The deposit is not the only upfront cost.
You should also budget for:
- Solicitor fees
- Valuation costs
- Surveys
- Moving expenses
Having savings beyond the £5000 deposit helps avoid last-minute issues.
How to Improve Your Chances With a £5000 Deposit
Borrowers often strengthen applications by:
- Reducing unsecured debt
- Avoiding overdraft usage
- Tidying bank statements
- Avoiding new credit applications
- Saving even a small additional amount
Even increasing the deposit slightly can improve lender choice.
Is Waiting to Save More Always Better?
Not always.
Waiting to save a larger deposit may:
- Take time if rents are high
- Delay buying opportunities
For some buyers, proceeding with a £5000 deposit is realistic if affordability and credit are strong.
Key Takeaways
- A £5000 deposit usually supports a £100000 purchase
- Income determines how much you can borrow
- High LTV mortgages have stricter checks
- Clean credit is especially important
- Saving more improves rates and options, but is not always required
Learn More in Related Guides
You can learn more about deposits, affordability, and lender criteria in our other Mortgage Bridge guides.
This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.
Check your credit in detail
Access your full credit report
See your complete credit information from all three major agencies with Checkmyfile. Try it free, then it’s a paid monthly subscription – cancel online anytime.
Get started now
Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.