The process of saving a substantial deposit can prove challenging when you’re looking to buy your first property in Liverpool.

The ongoing surge in property prices spanning the past twenty years has made that deposit seem increasingly difficult to obtain.

If you are first time buyer in Liverpool looking to get onto the property ladder, this helpful guide should help answer some of your questions regarding saving for a mortgage with a 5% deposit.

Is it possible to get a mortgage with a 5% deposit in Liverpool?

More often than not, mortgage lenders request an initial deposit of roughly about 5% of the total property value.

For example, for a property costing £200,000, a deposit of £10,000 would be necessary. As a mortgage broker in Liverpool, we evaluate your income and your financial capacity to work out whether a 5% deposit is achievable or if you need to target a larger figure.

Can you get a mortgage with a 5% deposit with bad credit in Liverpool?

Under certain circumstances, it is possible to achieve a mortgage with a 5% deposit even with bad credit in Liverpool.

Nonetheless, the viability is largely influenced by the severity and duration of your credit complications.

Typically, candidates with poor credit histories are requested to present a higher deposit, usually around 10%-15% of the property value.

Are there any ways that can help me buy a property in Liverpool?

There are a variety of schemes available for homebuyers that can help applicants move up the property ladder. In Liverpool, if you are struggling to save for a deposit, perhaps some of these schemes could help:

Mortgage Guarantee Scheme

This scheme might be beneficial for you as a first time buyer in Liverpool. It could assist you in securing a 95% mortgage, hence requiring only a 5% deposit.

Whether you qualify for this scheme entirely depends on your financial circumstances and creditworthiness.

Shared Ownership Scheme

Shared Ownership in Liverpool presents a realistic and affordable route to homeownership, by enabling individuals to own a portion of a property while renting the remainder.

You can buy a percentage of the property (usually between 25%-75%) and lease the rest. When the opportunity presents itself, you can gradually increase your percentage share in the property.

Sometimes, you will be able to build up to 100% ownership of the property.

Lifetime ISA

This incentive caters to helping first time homebuyers build up a deposit. It’s suitable for individuals aged between 18 – 40 contemplating the purchase of their first home.

Essentially, the Lifetime ISA is just a savings account where you can save up to £4,000 annually. Whatever you manage to save within the year, the government will top-up your savings by an extra 25% (£1000 being the max).

For a comprehensive coverage of these schemes, you can head to OwnYourHome.gov.uk where you can find a complete list of the schemes available.

Speak with a Mortgage Advisor in Liverpool

Alternatively, we invite you to connect with our team of mortgage advisors in Liverpool for a personalised discussion about your available options.

Depending on your personal financial situation, it may be possible to attain a mortgage with a 5% deposit without needing any additional support.

So if you’re a first time buyer in Liverpool, arrange your free mortgage appointment with us and kick-start your home ownership journey today.

Date Last Edited: March 27, 2024