LTV: 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

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How to get a mortgage with a low deposit

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.

Lowest Rate First Time Buyer Mortgages

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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.

Change any value and the other figures will update automatically.

Try an example: £250,000 home with a £25,000 deposit → 90% LTV

Property value

£40,000 £5,000,000

Changing the property value keeps the mortgage amount and recalculates your deposit or equity and LTV.

Deposit or equity

£0 £200,000

Mortgage amount

£0 £200,000

Loan-to-value

50%

0% 100%

Your loan-to-value

50%

A £100,000 mortgage on a £200,000 property.

50%

50% mortgage 50% deposit or equity

Search mortgages with these figures

Starts with a residential purchase. You can change the mortgage type and purpose in the search.

No mortgage borrowing needed

With these figures, the property value is fully covered by your deposit or equity. No mortgage borrowing is required.

Small mortgage amount

Fewer lenders offer mortgages below £25,000, so your options may be limited. Product and legal fees can also have a greater impact on the overall cost of a smaller mortgage.

Low property value

Fewer lenders offer mortgages on properties valued below £50,000. Minimum property values vary by lender and property type.

Buying to let?

If this is a buy-to-let purchase, most lenders cap borrowing at 75–80% loan-to-value, with some specialist options reaching 85%. This cap applies to buy-to-let mortgages only — residential lending typically extends to 95%.

High-LTV residential mortgage

Residential mortgages above 95% LTV have limited availability and often require a specialist mortgage product or scheme. Talk to your mortgage adviser about your options.

No deposit or equity buffer

You have no deposit or equity buffer. A fall in the property's value could leave you owing more than it is worth. No-deposit residential mortgages have limited availability and specific eligibility requirements. Speak to your mortgage adviser.

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.

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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.

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.