As always, lenders will take into account a number of factors such as credit score and affordability when deciding how much they are willing to lend to you. In some cases they may only be willing to loan less than 95% LTV but this will vary from lender to lender.

However the chances of a 95% mortgage are generally greater with many more banks and building societies offering the loans than in recent months. The Mortgage Guarantee scheme, which is similar to the Help to Buy mortgage guarantee scheme, which closed to new applicants in 2017, should help in this respect.

The government’s new scheme, announced in the March Budget, aims to encourage lenders to start offering more 95% mortgages again to assist those for whom getting a higher mortgage deposit could be problematic. Starting in April 2021, the guarantee scheme will see the government ‘guaranteeing’ 95% mortgages for buyers with deposits as small as 5%.

The means that lenders have a government guarantee that will part compensate the lender if a loanee defaults on the mortgage, or if house prices fall and the property ends up in negative equity i.e. is worth less than the outstanding mortgage. The scheme is available from April 2021, not only to first-time buyers, but also anyone looking to buy a home up to the value of £600,000. The hope is that by agreeing to cover the risks, more lenders will be willing to lend to homebuyers with a small deposit.