How to Buy a Home in Sheffield With a 5% Deposit | Mortgage Market Update 02/10/20

Mortgage Advice in Sheffield

The mortgage market is still suffering heavily from the effects of the coronavirus and there is no end in sight. It has been very difficult to get 95% mortgages (5% deposit) as lenders are only really looking for 90% or less. However, due to the latest mortgage market update, there are some ways that 95% mortgages can be obtained. As an expert Mortgage Broker in Sheffield, we are here to tell you how this can be achieved using the Help to Buy Equity Loan or the Shared Ownership scheme:

How to Buy a Home With a 5% Deposit | Shared Ownership & Help to Buy Equity Loan UK

Help to Buy Equity Loan

The way the Help to Buy Equity loan scheme works is that you put down a deposit of 5% or more and the government will loan you the remainder to make up a total of a 25% deposit. This means that the government own a 20% stake in your home. Along with your mortgage, you will have to pay off the equity loan. For 5 years this loan will be interest-free, if you haven’t paid it off within these 5 years you will start receiving interest on it. This will start at 1.75%.

So you can buy a home under the roof of this scheme. Although, there are some rules that come with the Help to Buy Equity Loan scheme that you need to meet in order to qualify for it:

  • The scheme is only accessible on newly built properties only
  • The maximum purchase price is £600,000
  • You can only own this property
  • You have to be buying the property for purely residential use only and not as a Buy to Let in Sheffield

If you take these points into account, do you think that the Help to Buy Equity Loan scheme could be right for you? If so, it could be time to jump at the opportunity and get yourself started on your Help to Buy journey. You can do this one of two ways, either by yourself or with a professional Help to Buy Mortgage Broker in Sheffield. Getting Help to Buy Mortgage Advice in Sheffield could take all of the stresses that come with mortgages off your back. An Advisor will talk you through the whole process and fully explain everything that is going on at every stage.

Shared Ownership

You can also get yourself onto the property ladder with a 5% deposit through the Shared Ownership scheme. The Shared Ownership scheme allows you to purchase a percentage of your mortgage and then pay the rest on rent. This percentage is normally anywhere between 25%-75%. Essentially, you and the government share the property; your share percentage can be increased anytime.

Just like the Help to Buy Equity Loan scheme, you will have to meet certain requirements to access the Shared Ownership scheme. Here are the rules that you will need to adhere to in order to qualify:

  • You can’t have a household income of more than £80,000 per year
  • Can only access if you can’t get a mortgage any other way
  • You need a good credit history
  • You can only own this property

Are you struggling to obtain a normal mortgage, Shared Ownership could be for you. It could be what you’re looking for in order to get the ball rolling. If you want expert Mortgage Advice in Sheffield and help getting started with the Shared Ownership scheme, approaching a Mortgage Broker in Sheffield could be within your best options.


Your options may be limited with a 5% deposit, however, the Help to Buy Equity Loan Scheme and Shared Ownership Scheme are definitely two routes to consider. Despite the fate of the mortgage market being up in the air, at the moment these schemes are still available and could help you obtain a great mortgage deal.

If you want to begin your mortgage journey, it could prove beneficial to approach a Mortgage Broker in Sheffield, particularly in this day and age. You want to have the best chances in your mortgage application being accepted so approaching a Help to Buy and Shared Ownership specialist could be the best option for you. & Sheffieldmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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