How Brits can qualify for mortgage scheme where you need just £5,000 deposit to buy a house

There's a mortgage scheme that Brits can take advantage of, offering the opportunity to put down a deposit of just £5,000 when buying their first house.

Getting into the property market in this day and age is quite the task, as inflation is still in a 'bad' place despite going down significantly since its peak in 2012.

It means that interest rates aren't what you'd call ideal, as the cost of living crisis continues to ravage on in more ways than one.

Buying your first home is a daunting task in any time period, but in the 2020s, it can feel almost impossible. However, a new scheme from the Yorkshire Building Society has offered many UK residents with the chance to afford their own home.

What it means is that instead of needing the traditional five percent of the total property value to secure a mortgage, you'll need just £5,000 on any property up to £500,000.

Being able to buy a house at all is a tough task (Getty Stock Image)

How does the mortgage scheme work?

Let's break it down - if you wanted a house that was valued at £300,000, you'd only need to put down £5,000 in cash for a deposit.

This differs to the five percent scheme, which would require a deposit of £15,000, or the 10 percent scheme, which would need £30,000.

This would mean that your mortgage is bigger though, which could mean your monthly repayments follow suit.

House hunters under this offer could take out a five-year fixed-rate mortgage at 5.74 percent interest, more favourable than last year's rate of 5.99 percent.

Residents in England, Scotland and Wales can make the most of this.

If only buying a home was as easy as it was in the 1950s (Getty Stock Image)

How can you claim the £5,000 mortgage scheme?

It's obviously not open to everybody.

First of all, you have to be buying your first property, which should come as no surprise as it's a first time buyer scheme.

You also can't be older than 70 when your mortgage agreement comes to an end. So in other words, if it's a 25 year mortgage agreement, this would mean that the oldest you could be when you take out the scheme is 45.

The deal also doesn't apply to residents of Northern Ireland.

What can the scheme be used to buy?

You can't buy any property you please.

If you use the Yorkshire Building Society scheme, you cannot buy a new-build house or flat. And as with any mortgage, loans are subject to rigorous credit scoring and affordability checks.

It's not open to absolutely everyone, and you'll still need to go through credit checks (Getty Stock Image)

What if you're struggling but really want to get on the property ladder?

Yorkshire Building Society isn't the only bank or building society out there that is doing its bit to help those who want to buy.

Skipton Building Society has what it calls a 'track record' mortgage. This is a scheme that helps renters to make the jump on to the ladder, potentially with no deposit needed at all (of course, subject to terms and conditions).

Skipton uses borrowers’ records of rental payments to help work out what they may be able to borrow.

Some lenders also offer deals where family members put up savings as security for a certain time period – such as Barclays’ family springboard mortgage.