A 95% mortgage allows you to buy a property with a 5% deposit, with the lender providing the remaining 95% of the purchase price.
For many first time buyers in Middlesbrough, this can be an attractive way to get onto the property ladder without needing to save a substantial deposit. While 95% mortgages can make homeownership more accessible, it is important to understand how they work and how they compare to mortgages available with larger deposits.
How Much Deposit Do You Need for a 95% Mortgage in Middlesbrough?
As the name suggests, a 95% mortgage requires a deposit worth 5% of the property’s value.
If you’ve found a property in Middlesbrough, sitting around the £150,000 mark, a 5% deposit would typically be around £7,500. The remaining balance would be covered by the mortgage, subject to affordability and lender criteria.
The exact amount needed will vary depending on the property’s purchase price, though many buyers find that saving 5% is a more achievable target than aiming for a much larger deposit.
What Are the Benefits of a 95% Mortgage?
The biggest advantage of a 95% mortgage in Middlesbrough is that it can allow buyers to purchase a property sooner.
Rather than spending additional years saving a larger deposit, some buyers are able to move forward once they have reached the minimum deposit requirement.
A smaller deposit can also leave more savings available for legal fees, surveys, moving costs and furnishing a new home.
For first time buyers in Middlesbrough, a 95% mortgage can provide a practical route into homeownership, particularly where affordability is stronger than deposit savings.
Are There Any Drawbacks to a 95% Mortgage?
Borrowing more of the property’s value means lenders generally take on greater risk, which can affect the mortgage products available.
Interest rates on 95% mortgages can sometimes be higher than those offered to buyers with larger deposits, and monthly repayments may also be higher because more money is being borrowed.
Some buyers choose to continue saving beyond 5% to improve their loan-to-value position, which may open up a wider range of mortgage options and potentially more competitive rates.
Whether this is worthwhile will depend on your circumstances and whether waiting longer to buy makes sense for your plans.
Can You Get a 95% Mortgage in Middlesbrough With a Gifted Deposit?
Yes, many lenders will accept gifted deposits from family members, provided the funds are genuinely a gift and do not need to be repaid.
Gifted deposits are common among first time buyers in Middlesbrough and can help buyers reach the minimum deposit requirement sooner than relying on savings alone.
Lenders will usually require evidence of where the funds have come from, along with confirmation that the gift is not a loan.
Understanding how gifted deposits work alongside a 95% mortgage can help you prepare the right documentation before applying.
Date Last Edited: June 15, 2026
