How to get a mortgage with a low deposit

Buying a home often comes down to one practical hurdle: the deposit. If you’re struggling to save enough because of rising prices, limited income, or other life costs, it’s natural to ask whether a mortgage with a low deposit is possible.

In many cases, yes—but the range of available deals can be narrower than for higher-deposit borrowers. The key is understanding the routes that may be open to you, preparing your application properly, and matching your circumstances to the right lender type.

This guide explains:

• What the lowest deposit options typically look like (including 5% / 95% LTV)
• Common low-deposit pathways (including gifted deposits and guarantor-style options)
• A practical process for improving your chances
• How buy-to-let low-deposit mortgages can differ
• Notable Scotland considerations

Can you get a mortgage with a low deposit?

A low-deposit mortgage can be possible, particularly if you can demonstrate affordability and acceptable credit history.

While the deposit is important, lenders also focus heavily on other factors such as:

• Your income and employment stability
• Your credit profile and existing financial commitments
• The property’s value and how it is assessed
• Whether the mortgage is for a residential purchase or buy-to-let

Because lenders manage risk differently, not every lender offers the minimum-deposit products, and some schemes have additional rules.

What is the lowest deposit you can get?

In the UK, the lowest deposit commonly seen for mainstream mortgages is 5%—meaning a 95% loan-to-value (LTV) mortgage.

Even when 5% is available in principle, approval still depends on meeting the lender’s wider requirements. That can include affordability checks, property valuation outcomes, and the strength of your overall application.

Options for low-deposit borrowers

If you’re aiming for a smaller deposit, there are several routes that may help you reach the required funds or access a product designed for higher-LTV lending.

1) First-time buyer (FTB) mortgages

Many of the most competitive 95% LTV products are aimed at first-time buyers. If you qualify as an FTB, you may find more options than if you’re moving home or remortgaging.

2) Gifted deposits

Some lenders allow part (or sometimes all) of a deposit to be provided as a gift from a family member.

Important points to consider:

• Lenders usually require evidence that the money is genuinely a gift (not a loan)
• Using a gifted deposit can affect how lenders assess affordability and risk
• Rules vary widely between lenders

3) Guarantor mortgages (family-assisted)

If saving a deposit is the main barrier, a guarantor may be an option.

Typically, this involves a family member who agrees to take on responsibility if repayments become difficult. Lenders will assess both parties’ suitability and financial position.

4) Springboard-style arrangements

Some arrangements are designed to reduce the upfront deposit burden by using funds placed with the lender or in an account structure.

These products can be complex, so it’s important to understand how repayment works, what happens at the end of the term, and any costs or conditions.

5) Right to Buy / discounted purchases

If you’re buying a property at a discount (for example, through certain local authority routes), the discount may reduce the amount you need to fund as a deposit.

In some situations, it may be possible to structure the purchase with a very small deposit, depending on the scheme rules and lender approach.

6) Concessionary purchases

Where you receive a discount on the purchase price, some lenders may treat the discounted element as part of your deposit position.

This is sometimes referred to as a concessionary purchase, and the exact way it is handled depends on the agreement and lender policy.

7) Government-backed low-deposit schemes

Government schemes can change over time, but they may be designed to increase the availability of higher-LTV mortgages from participating lenders.

If you’re considering a scheme route, it’s important to check how it affects:

• The maximum LTV or purchase price limits
• Whether the property must meet specific criteria
• Any valuation rules or restrictions

How to get a mortgage with a small deposit

A low-deposit mortgage is often about more than the deposit amount—it’s about presenting a strong, lender-ready application.

Step 1: Get clarity on your deposit target and LTV

Work out what deposit you can realistically provide and what that means in LTV terms. Even small differences can affect which products you can access.

Step 2: Prepare your finances for affordability checks

Lenders will look at your ability to repay. To strengthen your application:

• Ensure your income details are accurate and up to date
• Review your existing commitments (credit cards, loans, overdrafts)
• Consider how any irregular income is evidenced

Step 3: Understand how your credit profile may impact approval

A low-deposit mortgage can be more sensitive to credit history. Taking time to address issues—such as missed payments, high balances, or unresolved defaults—can improve your chances.

Step 4: Choose the right lender type for your situation

Different lenders may focus on different strengths. For example:

• Some are more open to first-time buyers
• Some may consider gifted deposits
• Others may be more suited to guarantor-style arrangements

A specialist approach can help narrow down realistic options rather than applying broadly.

Step 5: Make sure the property is likely to value as expected

With higher-LTV lending, valuation outcomes matter. If the lender values the property lower than the purchase price, it can affect the deposit requirement or the ability to proceed.

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

The approach to low-deposit lending can be different for buy-to-let.

In general, BTL mortgages often require a higher deposit than residential mortgages because lenders assess the risk based on rental income and the borrower’s overall position.

If you’re targeting a smaller deposit for a BTL purchase, lenders may look for evidence such as:

• Strong rental income forecasts (and realistic assumptions)
• A clear plan for the property’s performance
• Your experience (for example, previous landlord history)
• Ways to reduce risk, such as improving your credit profile
• Using equity from existing property holdings (where available)

Because BTL affordability calculations can be detailed, it’s especially important to ensure your application is consistent, well-evidenced, and aligned with the lender’s assessment method.

Options for borrowers in Scotland

Mortgage availability can vary across the UK, and Scotland has some specific considerations.

Mortgage guarantee scheme considerations

Where a government-backed guarantee is involved, providers may apply limits based on the purchase price or Home Report valuation, whichever is lower. This can be significant if you’re buying above valuation.

95% LTV products outside guarantee routes

Some lenders may offer 95% LTV options outside of guarantee arrangements. These can be helpful where other routes don’t fit, but they may come with different requirements.

Shared equity and equity loan-style support

Scotland also has schemes that can support eligible first-time buyers through equity loans or shared equity structures.

These typically work by reducing the amount you need to fund upfront, while the scheme partner holds an interest in the property. The repayment mechanism is usually linked to the property’s value when you sell.

Guarantor mortgages

Guarantor options exist in Scotland as well, but availability can be limited compared with other parts of the UK.

Key points to remember

• 5% / 95% LTV is often the lowest deposit level commonly seen, but not every lender offers it.
• Low-deposit mortgages can be available through multiple routes, including gifted deposits, guarantor-style options, and discounted purchase arrangements.
• For higher-LTV lending, lenders pay close attention to affordability, credit profile, and valuation.
• Buy-to-let low-deposit options often work differently and may require stronger rental-income evidence.
• Scotland can have distinct scheme rules and valuation approaches.

Using specialist support

Low-deposit lending is a niche area. The most suitable option depends on your deposit size, credit profile, income type, and the property you’re buying.

A specialist mortgage broker can help you understand which low-deposit routes are most realistic and how to present your application in a way that aligns with lender expectations.

If you want to understand the basics of mortgages and budgeting, you can also use guidance from MoneyHelper: https://www.moneyhelper.org.uk/en/homes/buying-a-home/mortgages