Saving for a deposit is one of the biggest challenges facing buyers across the UK, particularly first-time buyers trying to get onto the property ladder. Many people assume they need a huge deposit to buy a property, but that is not always the case.
In reality, there are still lenders offering:
- 5% deposit mortgages
- Family-assisted mortgage options
- Shared ownership schemes
- Low-deposit first-time buyer products
The key is understanding:
- which lenders are available
- how affordability works
- what deposit options may suit your situation
In this guide, we answer some of the most common questions borrowers ask about getting a mortgage with a small deposit.
Quick Answer
Yes, it is possible to get a mortgage with a small deposit in the UK. Some lenders still offer mortgages with deposits as low as 5%, although affordability, income, credit profile, and lender criteria remain very important.
The lower the deposit, the smaller your equity stake in the property, which can affect:
- mortgage rates
- monthly repayments
- lender choice
However, low-deposit mortgages continue to play an important role for many first-time buyers.
What Is Considered A Small Deposit?
Typically:
5% deposit = very low deposit mortgage
10% deposit = low deposit mortgage
15% – 20% deposit = more competitive mortgage pricing
For example:
If you are buying a property worth £300,000:
A 5% deposit would be £15,000
A 10% deposit would be £30,000
The remaining amount is borrowed through your mortgage.
Wondering whether you could buy with a smaller deposit? Speak to Oportfolio Mortgages today.
Can I Get A Mortgage With A 5% Deposit?
Yes, some lenders continue offering 95% loan-to-value (LTV) mortgages.
These are designed to help:
- First-time buyers
- Buyers with limited savings
- Younger professionals
- Renters struggling to save larger deposits
However, 5% deposit mortgages may:
- Have higher interest rates
- Be subject to stricter affordability checks
- Offer fewer lender options
This is why lender selection is extremely important.
Does A Bigger Deposit Improve Mortgage Rates?
Usually, yes.
A larger deposit can:
- Reduce lender risk
- Improve affordability
- Access lower mortgage rates
- Increase lender choice
- Reduce monthly repayments
This is why mortgage pricing often improves at:
- 90% LTV
- 85% LTV
- 80% LTV
- 75% LTV
Can Family Help With A Deposit?
Yes.
Many lenders accept gifted deposits from:
- Parents
- Grandparents
- Close family members
Some lenders also offer:
- Family-assisted mortgages
- Joint borrower sole proprietor mortgages
- Guarantor-style arrangements
These can help buyers improve affordability and borrowing potential.
What Do Lenders Look At Besides Deposit Size?
Deposit size is important, but lenders also assess:
- Income
- Credit history
- Existing debt
- Monthly commitments
- Employment type
- Affordability
- Spending habits
Some buyers are surprised to discover that affordability is often a bigger issue than deposit size itself.
Common Mistakes With Low-Deposit Mortgages
Some of the most common mistakes buyers make include:
- Assuming they need a 20% deposit
- Focusing only on headline rates
- Not checking affordability early
- Applying to the wrong lender
- Ignoring additional buying costs
- Underestimating legal and moving fees
Preparation is extremely important when buying with a smaller deposit.
Oportfolio Insight
Across London and the South East, we regularly speak to renters who assume buying is years away because they do not have a huge deposit saved. In many situations, the issue is not necessarily the deposit itself, the issue is understanding lender criteria and affordability. Some buyers may have more options available than they initially realise, particularly where:
- income is strong
- family support is available
- specialist lender criteria can help
The right mortgage structure can make a substantial difference.
Need Help Understanding Your Mortgage Options?
Whether you are, buying your first property, saving for a deposit, comparing low-deposit mortgage options, or just unsure how much you could borrow, we can help. At Oportfolio Mortgages, we help buyers across London and the South East understand:
- affordability
- lender criteria
- low-deposit options
- first-time buyer mortgage products
Book a confidential mortgage review with Oportfolio Mortgages and get tailored lender-backed guidance before you apply.
