Onto the ladder with a 5% deposit.
A smaller deposit needn’t mean waiting years. Here are the routes that work in 2026 — and how a contractor uses them while being assessed on a day rate.
The Mortgage Guarantee Scheme (Freedom to Buy)
The Mortgage Guarantee Scheme was made permanent in July 2025 under the name ‘Freedom to Buy’. It supports lenders offering 91–95% mortgages, so you can buy with a 5% deposit on a property up to £600,000 — as a first-time buyer or home mover. You don’t apply to the scheme directly; you apply for a 95% mortgage with a participating lender and the government guarantee works in the background.
Important: many lenders offer 95% mortgages without using the scheme, so the real task is finding the best 95% deal — which is a whole-of-market job, not a scheme application.
If you became a contractor recently
A 95% mortgage still hinges on how your income is assessed. We pair the low-deposit route with contract-based underwriting, so your day rate — not a thin set of accounts — drives the affordability. See first-time buyer mortgages for the day-rate angle.
Other low-deposit routes
- First Homes (England) — eligible first-time buyers can purchase certain new-build homes at a discount.
- Shared ownership — buy a share (from as little as 10% under the current model) and pay rent on the rest. See shared ownership.
- Right to Buy — qualifying council tenants buy their home at a discount. See Right to Buy.
- Lifetime ISA — a 25% government bonus on savings towards a first home, within the scheme’s limits.
- A 5% deposit is realistic in 2026 via 95% mortgages.
- The Mortgage Guarantee Scheme is permanent (Freedom to Buy, from July 2025), up to £600,000.
- You don’t apply to the scheme — you apply for a 95% mortgage; many exist outside it too.
- Help to Buy equity loans are closed to new buyers; the routes above replace them.
Scheme details last verified June 2026 and apply to England unless stated; rules differ in Scotland, Wales and Northern Ireland and can change. Always confirm current terms before relying on them.
95% mortgage lenders — a selection
Low-deposit schemes, answered
Can I buy with a 5% deposit in 2026?+
Yes. The Mortgage Guarantee Scheme — made permanent in July 2025 as ‘Freedom to Buy’ — supports 91–95% mortgages, so a 5% deposit is possible on properties up to £600,000, for first-time buyers and home movers. Many lenders also offer 95% mortgages outside the scheme.
Do I apply for the Mortgage Guarantee Scheme directly?+
No. You simply apply for a 95% mortgage with a participating lender; the government guarantee operates in the background to protect the lender. As a contractor, the key is being assessed on your contract income, which we handle.
Is Help to Buy still available?+
The Help to Buy equity loan closed to new applications in October 2022, with final completions in March 2023. It’s no longer available in England. If you already have one, you manage it under its existing terms; for new buyers, the routes below replace it.
What other help is there for a small deposit?+
First Homes offers eligible first-time buyers a discount on certain new-build properties in England. A Lifetime ISA adds a 25% government bonus to savings used towards a first home (within the scheme’s limits). We’ll match the route to your situation.