How to get a mortgage with a low deposit (including buy-to-let)

It can be possible to buy a property with a low deposit, but the range of available mortgage products is usually narrower than for borrowers with larger deposits. A low-deposit mortgage can still be achievable if you understand the options, prepare your finances carefully, and choose the right lender for your circumstances.

This guide explains what “low deposit” typically means, the main pathways that may help you buy with a smaller deposit, and how the approach can differ for buy-to-let and Scotland.

Can you get a mortgage with a low deposit?

Yes. In the UK, some mortgages may be available with deposits as low as 5% (often described as 95% LTV, where LTV stands for loan-to-value).

However, even where a 5% deposit is possible, lenders may apply additional conditions. These can include affordability requirements, credit history expectations, property type restrictions, and valuation outcomes.

What is the lowest deposit you can get?

For many mainstream mortgage products, the lowest deposit you’ll commonly see is 5%.

That said:

• Not every lender offers 95% LTV products.
• Some deals are aimed at specific borrower groups (for example, first-time buyers).
• A low deposit doesn’t remove the need to meet affordability and eligibility checks.

Options for borrowers with a small deposit

If you’re trying to buy with less cash upfront, there are several routes that may help. The best option depends on your income, credit profile, the property you’re buying, and whether you’re a first-time buyer.

1) First-time buyer (FTB) routes

Many lower-deposit mortgages are designed with first-time buyers in mind. If you qualify as an FTB, you may find more product choice at higher LTV levels.

2) Gifted deposits

Some lenders allow part of the deposit to come from a gift from a family member. This can reduce the amount you need to save yourself.

Important considerations:

• Lenders typically require evidence that the money is genuinely a gift (not a loan).
• Acceptable sources may be limited, and rules can vary by lender.

3) Guarantor mortgages (family-assisted)

If you can’t reach the deposit target, a guarantor mortgage may be an option. In these arrangements, a family member may agree to cover repayments if you’re unable to meet them.

Because guarantor mortgages involve additional risk assessment, lenders will typically look closely at both parties’ circumstances.

4) Springboard mortgages

A springboard mortgage is designed for borrowers who may not have a deposit ready, but who can access funds that can be held in an account with the lender.

The structure can vary, but the general idea is that the “deposit” is provided in a different way, and the arrangement is designed to allow the borrower to meet repayments while the funds are held.

5) Right to Buy / discounted purchase routes

If you’re eligible to buy a property at a discount (for example, certain council or housing association routes), the discounted purchase price can sometimes reduce the amount of cash needed upfront.

In some situations, it may be possible to structure the purchase with a very small deposit, but availability depends on the specific scheme and lender approach.

6) Concessionary purchases

If you’re buying a property at a discount to market value, some lenders may treat the discounted element as part of the “deposit” position.

This can be relevant where the purchase price is lower than the lender’s view of value, but it’s still subject to valuation and lender rules.

7) Government-backed low-deposit schemes

Government-backed schemes can influence the availability of higher-LTV lending by reducing risk for participating lenders.

Because scheme terms and lender participation can change, it’s important to check what’s currently available and how it applies to your situation.

How to get a mortgage with a small deposit

A low-deposit mortgage isn’t just about the deposit figure. Lenders will still assess affordability, credit history, and the property itself. The most effective approach is to prepare thoroughly and match your circumstances to lenders that are likely to consider your application.

Step 1: Get clarity on your deposit position

Before you apply, confirm:

• How much deposit you have available (including any gifts or other sources).
• Whether any “deposit” is coming from a structured arrangement (such as a guarantor or springboard).
• Your expected additional costs (for example, fees and moving costs), since these can affect how much cash you need to keep aside.

Step 2: Strengthen the parts lenders care about

Even with a low deposit, lenders typically focus on:

• Affordability based on your income and outgoings.
• Credit history and any recent changes.
• Stability of employment and income where relevant.

If there are areas you can improve—such as clearing arrears, reducing revolving credit, or correcting errors on your credit file—doing so can make a meaningful difference.

Step 3: Choose the right lender for your profile

Not all lenders offer the same LTV deals, and not all will accept the same deposit sources or property types.

A specialist broker can help narrow down options that are more likely to fit your circumstances, rather than applying broadly.

Step 4: Prepare for valuation and paperwork

At higher LTVs, the valuation outcome can be particularly important. If the purchase price is close to the lender’s valuation, it can affect how the deal is structured.

Having documentation ready—such as proof of funds, identification, and evidence relating to any gifted or structured deposit—can help keep the process moving.

Low-deposit buy-to-let (BTL) mortgages

Buy-to-let lending works differently from residential mortgages. While low-deposit options may exist, BTL typically involves additional underwriting around the rental income and the borrower’s financial position.

What changes with BTL?

In many cases:

• BTL properties may require a higher deposit than residential purchases.
• Lenders will assess whether the projected rent is sufficient to cover mortgage payments under their stress-tested assumptions.
• Your experience (or lack of it) as a landlord can be a factor.

Ways borrowers may manage a smaller deposit for BTL

Where deposit funds are limited, some strategies that may be considered include:

• Using a repayment structure that aligns with lender expectations.
• Demonstrating strong rental viability through realistic forecasts.
• Improving credit profile and overall affordability.
• Using equity from other property holdings to reduce the cash deposit required.

Because BTL criteria can vary significantly by lender, the most suitable route is often the one that matches your rental plan and financial profile to the right lender’s approach.

Low deposits in Scotland

Mortgage rules and scheme availability can differ across the UK. Scotland is one area where it’s especially important to understand how lender and scheme mechanics may affect your options.

Key points to consider in Scotland

• Valuation approach and scheme limits: Some schemes may cap lending based on the purchase price or a valuation method (such as Home Report valuation), whichever is lower. If you’re buying above valuation, this can affect the amount you can borrow.
• 95% LTV availability: Some lenders may offer 95% LTV products outside of certain government-backed routes, but these deals can be limited and may require careful matching to your circumstances.
• Shared equity and equity loan schemes: Scotland has had schemes designed to help first-time buyers buy with a smaller deposit by combining your cash with an equity component.
• Guarantor mortgages: Availability can be more limited with fewer lenders offering this type of arrangement, so it may require targeted searching.

Summary: getting a low-deposit mortgage that fits

A low-deposit mortgage can be a practical way to move onto the property ladder or invest in a rental property, but it requires the right combination of deposit strategy, affordability, and lender fit.

If you’re considering a low-deposit purchase, focusing on the details—how the deposit is sourced, how the lender will view affordability, and how valuation may impact the deal—can help you avoid unnecessary delays and improve the chances of finding a suitable mortgage product.