Mortgages · Low Deposit
A smaller deposit doesn't have to mean waiting years.
Saving a large deposit is often the single biggest barrier to buying — low deposit mortgages, typically at 90-95% loan-to-value (and occasionally higher via specific schemes), open up options for buyers with less saved. Rates are generally higher than lower-LTV deals, which is worth understanding upfront.
The trade-off worth understanding
Loan-to-value (LTV) is the mortgage amount as a percentage of the property value — a 5% deposit means a 95% LTV mortgage. Lenders generally price mortgages higher as LTV increases, since a smaller deposit means less of a buffer if property prices fall. That means a low-deposit mortgage will typically carry a higher interest rate than the same buyer could get with a 15-20% deposit.
That doesn’t mean waiting is automatically the right choice — house prices and rents can rise faster than many people can save. The true comparison is the total cost of buying sooner at a higher rate versus the cost (and uncertainty) of continuing to rent while saving. It’s a genuinely personal calculation and one worth working through properly rather than assuming either answer.
A small number of lenders sometimes offer schemes above 95% LTV — occasionally including deals with no deposit at all, often backed by a guarantor’s savings or assessing a strong rental payment history in place of a deposit. These are genuinely uncommon, not offered broadly across the market and availability changes frequently as lenders launch and withdraw them. Worth asking about, but not something to plan around without checking what’s actually available at the time.
Who this is for
- First-time buyers with a 5-10% deposit
- Renters struggling to save alongside rent payments
- Buyers considering guarantor or family-assisted schemes
- Those weighing up waiting to save more vs. buying sooner
- Buyers wanting to understand the true cost trade-off
- Anyone unsure what deposit they'd actually need
How it works
Establish your position
Deposit available, income and credit profile — the full picture affects which low-deposit options are open to you.
Compare the real cost
Higher LTV usually means a higher rate — we show you what that means in practice, not just whether you qualify.
Lender and scheme matching
Including any relevant low-deposit schemes you may be eligible for.
Agreement in Principle
Move to a formal lender AIP once the right option is identified.
Common questions
- The minimum deposit available from mainstream lenders is typically 5% of the property's value — giving an LTV of 95%. A small number of lenders have offered deals at higher LTVs via guarantor or savings-as-security arrangements, though these are uncommon and availability changes frequently.
- Yes, in terms of interest rate. Lenders price higher-LTV mortgages at higher rates because a smaller deposit represents greater risk if property values fall. A 95% LTV mortgage will carry a noticeably higher rate than the same property purchased with a 15-20% deposit. Whether it's worth waiting to save more or buying sooner at a higher rate is a genuinely case-by-case calculation.
- The Lifetime ISA provides a 25% government bonus on savings of up to £4,000 per year, which can be used as part of a deposit on a property worth up to £450,000. Shared Ownership allows you to buy a share of a property and pay rent on the remainder, requiring a much smaller upfront deposit. Availability and terms of other schemes change periodically — we can advise on what is currently available.
- Credit history, income stability and employment type all matter alongside the deposit size. A buyer with a clean credit record, stable employment and a 10% deposit is in a meaningfully different position from someone with the same deposit but adverse credit or variable self-employed income. A full assessment of your picture — not just the deposit — is the right starting point.
What is the minimum deposit for a UK mortgage?
Is a 5% deposit mortgage more expensive?
Are there government schemes that can help with a low deposit?
What else affects my chances with a low-deposit mortgage?
Reviewed by Jack Cousins · CeMAP qualified
21 August 2026
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