A low deposit mortgage lets you borrow 90% to 95% of a property’s value. You only need to find the other 5% to 10% in cash.
Lenders see these loans as higher risk because there is less of your own money in the home, so they check applications more closely.
These loans are a real part of the market. The FCA reports that 8.4% of gross mortgage advances in the second quarter of 2026 had a loan to value above 90%. That is the highest share since the second quarter of 2008.
Below you will find the lowest deposit lenders accept and how the Mortgage Guarantee Scheme works. We also cover the costs on top of the deposit and what to do if you cannot reach 5%.
What is a low deposit mortgage?
A low deposit mortgage is a home loan for buyers who can put down 5% to 10% of the purchase price. The lender provides the rest, so the loan is around 90% to 95% of the property’s value.
They suit first time buyers, home movers and homeowners who need to remortgage with little equity to spare. Equity is the part of the property you own outright, meaning its value minus what you owe.
Mortgages for the full purchase price were once common, but lenders largely withdrew them after the 2008 financial crisis. A 10% deposit opens up far more deals than 5%. The lender has more of your money standing between its loan and any fall in the property’s value.
Low deposit mortgage key figures at a glance
The main figures are below, each linked to the page it came from.
| Figure | Value | Period | Source |
|---|---|---|---|
| Share of mortgage lending above 90% loan to value | 8.4% of gross advances | Q2 2026 (April to June) | FCA mortgage lending statistics |
| Share of mortgage lending above 95% loan to value | 0.5% of gross advances | Q2 2026 (April to June) | FCA mortgage lending statistics |
| Loan to value covered by the Mortgage Guarantee Scheme | More than 90% up to 95% | Scheme rules dated 3 July 2025 | 2025 Mortgage Guarantee Scheme |
| Average UK house price | £273,000 | August 2026 (provisional) | UK House Price Index summary |
| First-time buyer stamp duty | No tax up to £300,000, then 5% up to £500,000 | At the time of writing (October 2026) | Stamp Duty Land Tax residential rates |
| Lifetime ISA | Up to £4,000 a year, with a 25% bonus of up to £1,000 a year | 2026 to 2027 tax year | Lifetime ISA overview |
What’s the lowest deposit you can have?
On a mainstream UK mortgage, the usual minimum deposit is 5% of the purchase price.
Lending above 95% is very rare. The FCA reports that mortgages above 95% loan to value made up just 0.5% of gross advances in the second quarter of 2026.
For example, say you buy a home for £500,000. A 5% deposit is £25,000, which means a 95% mortgage of £475,000. With a 10% deposit of £50,000 you would borrow £450,000 on a 90% LTV mortgage.
Lenders base the loan on the lower of the purchase price and their own valuation, so a low valuation can leave you needing more cash. Even when 5% is the minimum, only some lenders offer it, and many stop at 90%.
The Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme is a government scheme that encourages lenders to offer mortgages above 90% loan to value.
The Treasury insures a taking-part lender against part of its losses if a borrower defaults. You do not apply for the guarantee yourself. It sits behind certain lenders’ products, and each lender chooses whether to join.
Government backing began in 2021 and was due to expire. A permanent version, the 2025 Mortgage Guarantee Scheme, has been available since July 2025. According to GOV.UK, it covers loans of more than 90% up to 95% loan to value. Our Mortgage Guarantee Scheme explainer covers it in more detail.
Under the scheme rules, the loan must be a repayment mortgage secured as a first charge on a home you will live in.
Buy to let, interest only, shared ownership, guarantor and offset mortgages do not qualify.
Costs to budget for besides the deposit
Most buyers concentrate on saving the deposit, but several other costs come on top, and some fall due before you complete.
- Solicitor or conveyancer fees
- Survey and valuation fees
- Stamp Duty
- Mortgage fees
- Broker fees
- Removal costs
Stamp duty depends on the price and on whether you have owned a home before.
First-time buyers pay no stamp duty up to £300,000, according to the government’s residential rates page. They pay 5% on the portion from £300,001 to £500,000, and get no relief above that (at the time of writing, October 2026).
On the £500,000 example, a first-time buyer owes £10,000. A home mover buying the same property as their only home owes £15,000. That uses the standard rates of 0% up to £125,000, 2% on the next £125,000 and 5% from £250,000 up to £925,000.
Our guide to mortgage fees explains the other costs in more detail.
Mortgage eligibility
To qualify for a low deposit mortgage you need the cash deposit and you must also meet the lender’s criteria.
The same rules apply to every mortgage, including high deposit mortgages. A small deposit gives the lender less cover, though, so some are stricter at higher loan to value.
Loan to value
Every lender sets a maximum loan to value, or LTV, which is the loan as a percentage of the property’s value.
A 5% deposit means applying for 95% LTV. Many lenders cap their range at 90%, so a broker will check who is lending at your level before you apply. Our guide to what loan to value means shows how to work it out.
Credit status
The lender will credit check you. Some are relaxed about a few past blips, while others want a clean file.
It is worth checking your credit report before you apply, and our guide covers what credit score you need for a mortgage.
Lenders using the guarantee must apply extra limits. Under the scheme rules, a lender cannot use it if you owed three months of overdue payments on a loan in the last 2 years. The same applies to a county court judgment over £500 unless it was paid within a month or is more than 3 years old. Bankruptcy or an individual voluntary arrangement (IVA), a formal deal to repay your debts, in the last 3 years also rules it out.
Affordability
FCA rules in MCOB 11.6 require every lender to assess whether you can afford the loan before it lends. Lenders still start with income multiples, such as 4 or 4.5 times your annual income. They then look at how you spend your money and test whether you could keep paying if rates rose.
Our guide to what size mortgage you could afford walks through the sums.
The property
The home has to suit the lender as well as you. Standard construction, with brick walls and a tiled roof, is the easiest to finance, while other types can narrow the choice. For anything different, such as a flat above a shop or a timber-framed house, read about specialist property mortgages and speak to a broker first.
How to apply for a low deposit mortgage
Start with an independent mortgage broker who has placed low deposit applications before. Respect Mortgages is not a broker, but we can introduce you to one.
A broker can check which lenders are open at your LTV, then ask for a decision in principle, or DIP. This is a lender’s initial check that it would lend to you on the details you have given. Some lenders use a hard credit search for it, so ask before you apply.
If the DIP goes well, you move on to the full application. Your broker handles the paperwork and answers questions from the lender and your solicitor along the way.
Avoid applying to several lenders yourself. Each full application leaves a search on your credit report and can affect your credit score.
Guide to Deposits
Our guide explains what a mortgage deposit is and how it affects your mortgage choices.
Applying for a mortgage
We explain what happens at each step, including what documents are needed and how a broker can help.
Pros and cons of a low deposit mortgage
The main advantage
The main advantage is speed: you can buy sooner and spend fewer years saving. The UK House Price Index put the average UK home at £273,000 in August 2026 (a provisional estimate). A 5% deposit on that would be £13,650, compared with £27,300 for 10%.
The downsides
There are three downsides:
Choice: There are fewer deals at 95% LTV than at lower levels, and fewer lenders take part.
Cost: Lenders see higher LTV loans as riskier, so interest rates are usually higher. Rates change often, and a broker can check today’s deals. You also borrow more, which adds to the interest you pay over the term.
Negative equity: This is where you owe more on your mortgage than the property is worth. With a £475,000 loan on a £500,000 home, a 5% fall in value wipes out your deposit. After an 8% fall the home would be worth £460,000, which is £15,000 less than the loan if you had repaid nothing.
Prices can fall. The UK House Price Index shows UK flats fell 1.6% and London homes overall fell 2.2% in the 12 months to August 2026. Negative equity only bites if you need to sell or remortgage, but it can limit your options.
Our guide explains how to deal with negative equity.
Is a 5% deposit too low?
A 5% deposit is enough to secure a 95% mortgage if the lender and the property both fit its rules. If you can reach 10% or more, you will usually see more deals and lower interest rates, because the lender takes less risk when you put more in.
A smaller deposit gives you less room if prices fall or your income changes. Before you commit, check that you could still afford the payments if rates went up.
Should you wait to save more?
There is no universal answer on whether to wait. A bigger deposit usually brings a cheaper deal, but you keep paying rent while you save, and if prices rise faster than your savings the target moves away from you.
Someone with an uncertain income has more reason to wait for the larger cushion, while someone with steady earnings who plans to stay for years may find 5% workable. A broker can put real figures on both routes.
Two of our guides help here. The guide to deposits explains what a mortgage deposit is and how it affects your choices. Applying for a mortgage covers each step, including the documents you need.
Can you get a mortgage without a deposit?
A mortgage without a deposit is a 100% mortgage. Lenders withdrew them after the financial crisis and they remain rare. Some lenders have brought 100% products back in recent years, with full checks on income and spending. A broker can tell you which, if any, are open to new applications.
There are other ways to buy without a personal deposit:
- Guarantor mortgages, where someone agrees to cover your payments if you cannot
- JBSP mortgages, where a family member joins the loan but not the ownership
- Family offset mortgages, where a relative’s savings sit in a linked account and cut the interest you pay
- Family deposit schemes, where a relative’s savings are held as extra security for the lender, so you need no cash deposit of your own
Guarantor and offset mortgages fall outside the Mortgage Guarantee Scheme. Our article on how to get a mortgage with no deposit goes through each route.
Gifted deposits and other ways to boost your deposit
Family help is a common route to a deposit, and lenders set rules for it.
What is a gifted deposit?
A gifted deposit is money given to you, usually by a family member, to use as your mortgage deposit. It must be a genuine gift, not a loan that needs to be repaid.
Who can provide a gifted deposit?
Most lenders accept gifts from immediate family such as parents, grandparents and siblings, and many include step-parents, aunts, uncles and legal guardians. Some lenders set stricter limits on who can give, so check early.
What paperwork do you need?
You will need a gifted deposit letter stating the amount and confirming it is a gift, not a loan. The person giving the money will usually have to show where it came from, with bank statements. They also need ID and sometimes proof of address.
Can a Lifetime ISA help?
According to GOV.UK, a Lifetime ISA lets you pay in up to £4,000 a year in the 2026 to 2027 tax year. The government adds a 25% bonus of up to £1,000 a year. Taking the money out for anything other than a first home or later life can cost you part of your savings. Check the current terms before you open one.
The government has said it plans to replace the Lifetime ISA with a First Time Buyer ISA. In a consultation updated on 29 June 2026, it said you can still open a Lifetime ISA until then and keep paying into existing accounts.
How a broker can help
Searching for a mortgage with a small deposit takes time, and the detail matters. A lender may advertise 95% mortgages but add conditions on property type, income or credit history that rule you out.
A whole of market broker can search the full range of lenders that accept broker applications. They read the small print and phone lenders to check criteria. Some lenders only accept applications through brokers, so going direct can leave those deals out of reach.
Brokers also know how lenders treat the small things, such as a gifted deposit, a recent credit blip or a non-standard property. These details can decide whether an application goes through.
Frequently Asked Questions
The usual minimum on a mainstream mortgage is 5% of the purchase price, which gives you a 95% loan to value mortgage. A small number of lenders offer 100% mortgages with no cash deposit, but they are rare and have strict criteria. On a £500,000 home, a 5% deposit is £25,000.
Yes. Several lenders offer 95% mortgages, and the Mortgage Guarantee Scheme supports some of them. You will have fewer deals to choose from than with a 10% deposit, and the lender will look closely at your credit history and affordability. A broker can show you which lenders suit your situation.
Often, yes. With less of your money in the property, the lender has less cover, so credit history, income and spending all matter more and fewer lenders will accept a borderline case. A clean credit file, a steady income and low debts all help, whatever size of deposit you have. A broker can check each lender’s criteria before you apply, which avoids a wasted application to one that is likely to say no.
Usually. Lenders see higher loan to value loans as riskier, so they tend to price them higher than loans with a bigger deposit. Rates change often, and a broker can compare what is available from several lenders when you are ready to apply.
It is a government scheme that insures participating lenders against part of their losses on mortgages above 90% and up to 95% loan to value. The 2025 version is permanent. You do not apply for it yourself, and each lender chooses whether to take part.
Yes. Both can borrow at 95% loan to value, and the Mortgage Guarantee Scheme covers eligible first-time buyers and home movers. The loan must be on a home you will live in, so buy to let purchases do not qualify under the scheme.
