You may need a smaller deposit than you think to buy a home. Deposits on residential mortgages typically start from 5% of the property's value, and 0% deposit mortgages are available with some lenders, subject to eligibility. This guide explains how low deposit mortgages work, the schemes that could help you buy with less, and what a smaller deposit means for your options.
Key takeaway: A 5% deposit is enough to buy with many lenders, and a growing group of lenders now lend below 5%, some with no deposit at all. The trade-offs are a higher rate banding and a smaller buffer against price falls, so the right route depends on your circumstances - and on knowing which lenders and schemes genuinely fit them.
[[stats: From 5% = Typical minimum deposit on a residential mortgage | 0% = Deposit needed with some lenders, subject to eligibility | Up to 6x = Income available on some 5% deposit first time buyer schemes]]
Where do you stand right now? Tap the option that matches you and we'll take you straight to the routes that could work.
[[jump: I have a 5% deposit|Can you get a mortgage with a 5% deposit? ;; I have less than a 5% deposit|Can you get a mortgage with less than a 5% deposit?]]
How much deposit do you need for a mortgage?
For most residential mortgages, the minimum deposit is 5% of the property's value - £12,500 on a £250,000 home. Lenders describe this the other way round, as loan to value (LTV): a 5% deposit means a 95% LTV mortgage, because the loan covers 95% of the price.
A bigger deposit opens up lower rate bandings and more lender choice, but waiting years to save one is not automatically the better route. While you save, prices can move and you keep paying rent, so it is worth understanding what you could do with the deposit you already have before assuming you need more.
Can you get a mortgage with a 5% deposit?
Yes - with a 5% deposit, most of the low deposit mortgage market is open to you. A 5% deposit mortgage and a 95% mortgage are the same thing, just described from opposite ends, and 95% LTV mortgages are available from many lenders. The government also made its mortgage guarantee scheme permanent in July 2025, which supports lenders in continuing to offer them. The scheme works behind the scenes between the lender and the government - you do not apply for it yourself, you simply apply for a 95% mortgage.
A 5% deposit does not have to mean modest borrowing either. Nationwide's Helping Hand accepts a 5% deposit and lends eligible first time buyers up to 6 times income on a 5 or 10 year fixed rate - our Nationwide Helping Hand guide covers the full criteria. The main trade-off at 95% LTV is that you are usually charged one of the higher rate bandings, which we cover further down.
Can you get a mortgage with less than a 5% deposit?
Yes - and this is where knowing the market really pays. More lenders than most people realise now offer no deposit mortgages, £5,000 deposit mortgages and 2% deposit schemes, and each takes its own approach. Tap any lender below to see the deposit needed and the key criteria.
[[accordion: Skipton Track Record Mortgage - £0 deposit|Skipton's Track Record mortgage needs no deposit at all. You must be 21 or over, must not have owned a property in the last 3 years, and need 12 months of experience paying rent and bills within the last 18 months. Borrow up to 4.49x income, to a maximum of £600,000, on a 5 year fixed rate only. Monthly payments cannot be more than 150% of your current rent, and new build flats are not accepted. ;; Metro Bank Family Support - £0 deposit|Metro Bank's family support route requires no deposit, through a Joint Borrower Sole Proprietor mortgage supported by a family member. Combined income must be at least £75,000, with borrowing up to 4.45x income and a maximum loan of £675,000. A minimum 35 year term applies. ;; April Mortgages 100% Mortgage - £0 deposit|April's 100% Mortgage needs no deposit, with borrowing up to 4.49x income and a minimum loan of £50,000. Available on 10 or 15 year fixed rates only, on houses rather than flats, with new builds excluded. A minimum household income of £24,000 applies, and it is only available through a mortgage broker. ;; Cambridge First Step Mortgage - 2% deposit|Cambridge Building Society's First Step Mortgage needs just a 2% deposit, with gifted deposits accepted from family. Borrow up to 5.5x income, with a minimum property value of £100,000 and a maximum loan of £500,000. New build houses are accepted but new build flats are not, on a 5 year fixed rate only. ;; Leeds Start Mortgage - 2% deposit (min £5,000)|Leeds Building Society's Start Mortgage has a minimum deposit of 2% or £5,000, whichever is greater, and gifted deposits are welcome. Borrow up to 5x income with a minimum income of £30,000, up to a maximum loan of £500,000, on a 5 year fixed rate only. Self employed applicants are allowed. ;; Santander My First Mortgage - 2% deposit (min £5,000)|Santander's My First Mortgage has a minimum deposit of 2% or £5,000, whichever is higher, and gifted deposits are accepted. All applicants must be first time buyers. Borrow up to 4.49x income, with loans from £190,001 to £500,000, on a 5 year fixed rate only. ;; Newcastle First Step Mortgage - 2% deposit (min £5,000)|Newcastle Building Society's First Step Mortgage has a minimum deposit of £5,000 or 2%, whichever is higher, and at least one applicant must be a first time buyer. Loans run from £96,000 to £350,000 on a 5 year fixed rate only. Not available on new build houses or flats. ;; Accord £5k Deposit Mortgage - £5,000 deposit|Accord's £5k Deposit Mortgage lets you buy with a £5,000 minimum deposit on properties up to £500,000. At least one applicant must be a first time buyer, borrowing is capped at 4.49x income, and gifted deposits are accepted. New builds are not included, and it is available on a 5 year fixed rate only. ;; Halifax £5k Deposit Mortgage - £5,000 deposit|Halifax's £5k Deposit Mortgage needs a £5,000 minimum deposit, which must be from your own funds - gifted deposits are not accepted. Borrow up to 5.5x income. At least one applicant must be a first time buyer, the purchase price must be between £102,000 and £300,000, new builds are excluded, and it is available on a 5 year fixed rate only.]]
Criteria correct as at 27 August 2026 and subject to change - always check the current position with your adviser before relying on any of them.
Metro Bank's route uses a Joint Borrower Sole Proprietor structure, which our guide to Joint Borrower Sole Proprietor mortgages explains in full, and Skipton's Track Record and Accord's £5k Deposit Mortgage have their own pages on Skipton's site and Accord's site. As the criteria above show, almost all of these schemes come on a 5 year fixed rate only, at least one applicant usually needs to be a first time buyer, and the realistic choice depends on your income, the property and where your deposit is coming from - which is exactly what a mortgage broker at Quanstrom Financial can match you to. Our complete first-time buyer guide is a good companion read.
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What does a low deposit mean for your mortgage?
Lenders band their rates by LTV - for example up to 60%, 75%, 90% or 95% - and the higher your LTV, the higher the rate banding you are usually charged. A 95% LTV mortgage therefore typically costs more each month than the same loan at 90%, which is why even a slightly bigger deposit can be worth having if it moves you into a better banding.
[[table: Deposit | Loan to value (LTV) | What it typically means ;; 0% | 100% | Skipton's Track Record, Metro Bank's family support route and April's 100% Mortgage, each with specific eligibility rules ;; 2% to £5,000 | Up to 98-99% | Accord and Halifax's £5k Deposit Mortgages, Cambridge and Newcastle's First Step, Leeds' Start Mortgage and Santander's My First Mortgage ;; 5% | 95% | Available from many lenders, usually at the highest rate bandings ;; 10% | 90% | Noticeably more lender choice and better rate bandings ;; 15-25% | 75-85% | Most of the market opens up, with stronger rate bandings again ]]
The other consideration is equity. With a low deposit mortgage you own a small share of the property at the start, so if prices fell significantly you could temporarily owe more than the home is worth, known as negative equity. This matters most if you may need to sell or remortgage in the short term - each monthly repayment builds your equity, and your LTV usually improves as the balance reduces, so it is a risk that shrinks over time.
Good to know: New build purchases often come with their own tighter deposit and valuation requirements, so the deposit a lender wants on a new build flat can differ from the same lender's standard range. Our guide to new build mortgages covers this in detail.
How can you boost a small mortgage deposit?
If you are close but not quite there, a few routes can bridge the gap.
[[accordion: A gift from family|Most lenders accept a gifted deposit from parents or close family, and a smaller number accept gifts from friends. The lender will want a signed letter confirming it is a genuine gift, not a loan, plus evidence of where the funds came from. ;; A Lifetime ISA bonus|Save up to £4,000 a year into a Lifetime ISA and the government adds a 25% bonus, up to £1,000 a year, provided the funds go towards a first home worth £450,000 or less. ;; Developer incentives on a new build|Developers often offer deposit contributions or help with fees on new build homes. Most lenders accept incentives up to around 5% of the purchase price without adjusting their valuation - above that, the incentive is often deducted from the price for lending purposes. ;; Borrowing power instead of deposit|Sometimes the real problem is the loan size, not the deposit. Schemes with enhanced income multiples, or adding a family member's income through a Joint Borrower Sole Proprietor mortgage, can close the gap without another year of saving.]]
Because lenders treat gifted funds, incentives and boosted incomes differently, this is exactly where a mortgage broker at Quanstrom Financial earns their keep: matching the route to the lender that genuinely accepts it. Our guide to what a mortgage broker does explains how that works.
Want to see the full cash you would need on completion day, including stamp duty and fees, not just the deposit? Enter your figures below.
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Frequently asked questions
What is the minimum deposit for a mortgage in the UK?
For most residential mortgages the minimum deposit is 5% of the property's value, though 0% deposit mortgages are available with some lenders, subject to eligibility - Skipton's Track Record mortgage for eligible renters is the best known example.
What is a 95% mortgage?
A 95% mortgage is one where the loan covers 95% of the property's value and your deposit covers the remaining 5% - so it is simply another name for a 5% deposit mortgage. Many lenders offer them, supported by the government's permanent mortgage guarantee scheme, though availability and rate bandings vary between lenders, so it is worth comparing across the market rather than checking one bank.
Can I get a no deposit mortgage?
In some circumstances, yes. Skipton's Track Record mortgage uses 12 months of on-time rent and bill payments instead of a deposit, April Mortgages lends with no deposit on 10 or 15 year fixed rates, and Metro Bank offers a no deposit Joint Borrower Sole Proprietor mortgage supported by a family member. All have specific eligibility rules, so whether they fit depends on your situation.
Can I buy a house with a £5,000 deposit?
Yes, with the right lender. Accord and Halifax both offer £5k Deposit Mortgages, and Leeds Building Society's Start Mortgage, Santander's My First Mortgage and the First Step Mortgages from Newcastle and Cambridge Building Societies all accept 2% or £5,000 deposits, subject to their criteria. Most require at least one first time buyer applicant and come on a 5 year fixed rate only, and rules on gifted deposits, price ranges and new builds vary by lender - see the lender breakdown above.
Are low deposit mortgages more expensive?
Usually, yes. Lenders band their rates by loan to value, and a 95% LTV mortgage typically sits in a higher rate banding than the same loan at 90% or below. As you repay the mortgage your LTV improves, which can open up better bandings when you next remortgage.
Is it better to wait and save a bigger deposit?
Not automatically. A bigger deposit means better rate bandings and more of a buffer, but while you save you keep paying rent and prices can move. The right answer depends on your circumstances, which is worth talking through with an adviser rather than assuming more saving is always the answer.
Can I use money from my parents as a deposit?
Yes, most lenders accept a gifted deposit from parents or close family, and some accept gifts from friends. Expect the lender to ask for a signed letter confirming the money is a genuine gift rather than a loan, along with evidence of where it came from. A few schemes are stricter - Halifax's £5k Deposit Mortgage requires the deposit to come from your own funds.
Can I get a low deposit mortgage with bad credit?
It can be harder, since the realistic lender pool narrows when a small deposit and credit issues overlap, but it is not automatically a no - what feels serious to you may be seen as mild by the right lender. Our adverse credit mortgage guide covers the options in detail.
Do new builds need a bigger deposit?
Often, yes. New build lending generally comes with its own tighter deposit and valuation requirements, and flats are frequently capped at a lower LTV than houses, so the deposit needed on a new build can be higher than on an equivalent older property. Most of the sub-5% schemes above exclude new builds partly or entirely.
What is the mortgage guarantee scheme?
It is a permanent government scheme, in place since July 2025, under which the government shares some of the lender's risk on 95% LTV mortgages. It operates between the lender and the government, so there is nothing for you to apply for - you simply apply for a 95% mortgage with a participating lender.
Written by Toby Quanstrom CeMAP, Director at Quanstrom Financial, a whole-of-market mortgage broker based in Eastbourne, East Sussex.
This article is for general information only and does not constitute financial advice. Scheme rules and lender criteria change, so always check current details with your adviser before making a decision. Your home may be repossessed if you do not keep up repayments on your mortgage.
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