Lloyds Banking Group is launching a scheme for first time buyers requiring just a £5,000 deposit.
From May 18, first time buyers with Lloyds, Halifax and Bank of Scotland looking at homes worth up to £300,000 may be eligible for the £5,000 deposit mortgage.
Shared ownership schemes, new build homes and gifted deposits are not eligible. The qualifying criteria and product details are:
| Maximum purchase price | £300,000 |
| Maximum loan | £295,000 |
| Minimum Deposit | £5,000 |
| Mortgage Rate | 5.89% |
| Product Fee | £0 |
| Maximum Term | 40 years |
| Valuation | Free Level 1 |
| Maximum LTI | 4.5x |
| Equivalent Maximum LTV* | 98% |
| Credit Rating Required | High |
| Employment | Employed and Self-Employed |
| FTB Status | At least one applicant must be a FTB |
| Availability | Intermediaries and direct channels |
Who could the £5,000 deposit offer help?
According to the most recent figures published by UK Finance (May 2025), the average first time buyer household – that isn’t getting help with a deposit – had an income of £65,351 and bought a home worth £279,381.
Based on a 5% minimum, that means they need to save around £14,000 for a deposit, before any other cost like legal fees or furniture, fixtures and fittings.
Around the country, first time buyers looking at homes price below, at and even above average purchase prices, could see their required deposit fall considerably compared to a 5% deposit.
In 2025, an estimated 270,000 first homes worth £300,000 or less were bought with a mortgage.
Regional average FTB house prices and 5% deposit
| Region | Ave. FTB House Price | 5% Deposit | Reduction vs £5k deposit |
| East Midlands | £204,687 | £10,234 | £5,234 |
| Eastern England | £274,631 | £13,732 | £8,732 |
| Greater London | £464,646 | £23,232 | N/A |
| North East | £143,928 | £7,196 | £2,196 |
| North West | £201,120 | £10,056 | £5,056 |
| Northern Ireland | £195,981 | £9,799 | £4,799 |
| Scotland | £168,793 | £8,440 | £3,440 |
| South East | £302,396 | £15,120 | N/A |
| South West | £241,949 | £12,097 | £7,097 |
| Wales | £198,283 | £9,914 | £4,914 |
| West Midlands | £219,581 | £10,979 | £5,979 |
| Scheme Max. | £300,000 | £15,000 | £10,000 |
Source: Halifax House Price Index April 2026
In fact, any home with a price between £100,000 and £300,000 would have a lower deposit requirement than for a 95% mortgage.
Amanda Bryden, head of Halifax Intermediaries and Scottish Widows Bank, says: “We recognise our responsibilities as a lender to ensure loans are affordable – not just now, but in the future for all our borrowers.
“A lower deposit can make it easier to save for a deposit for many, or it can help free up cash for other costs, like conveyancing or setting up your new home the way you want it.”
