What counts as a low-deposit mortgage?
A low-deposit mortgage is typically 90% or 95% loan-to-value (LTV) — a 10% or 5% deposit. The smaller your deposit, the higher the lender's risk, so rates rise as LTV climbs. The best low-deposit mortgage has the lowest true cost (rate plus fees) that will actually accept your circumstances.
1. 95% LTV (5% deposit) mortgages
The most accessible route onto the ladder, available for first-time buyers and home movers with clean credit and stable income. Expect higher rates than larger-deposit deals and careful affordability checks. Best when getting bought sooner outweighs waiting to save more.
2. 90% LTV (10% deposit) mortgages
A 10% deposit unlocks a noticeably better rate band than 5% — often the sweet spot between accessibility and cost. If you can stretch from 5% to 10%, the saving over the deal period is usually worth it. Best for buyers who can save a little longer or have modest family help.
3. Guarantor and family deposit mortgages
With little or no deposit, family-assisted products let a relative's savings or property stand in for some of it — sometimes enabling effectively higher-LTV lending at better rates. Best where family can help without gifting cash outright.
4. Deposit-boost and gifted-deposit mortgages
Many lenders accept a gifted deposit from close family, which can take you from 5% to 10%+ and a better rate. Others partner with deposit-boost schemes. Best for buyers whose family can gift rather than lend — you'll need a simple gift declaration.
5. New-build low-deposit schemes
Developers and lenders sometimes offer schemes on new-builds that reduce the deposit needed. These come and go, so the best mortgage is one from a lender comfortable lending on new builds (some cap LTV on flats) and compatible with any scheme on offer.
How to get the best rate with a small deposit
- Push to the next LTV band if you can (95% → 90% → 85% each cut the rate)
- Keep your credit file spotless for 12 months before applying
- Compare true cost — a low rate with a big fee can cost more than a higher rate with no fee
- Accept a gifted deposit if family can help
- Use a broker to reach building societies with the keenest high-LTV deals
How to find the best low-deposit mortgage
High-LTV deals change constantly and the best are often from smaller building societies. A whole-of-market broker can compare true cost across the market and confirm which lenders accept your deposit source and property type. Find a mortgage broker through Nesto — free, no obligation.
Frequently asked questions
Can I get a mortgage with a 5% deposit?
Yes — 95% LTV mortgages are widely available for buyers with stable income and clean credit, though at higher rates than larger-deposit deals.
Is it worth waiting to save a 10% deposit?
Often yes — 90% LTV rates are meaningfully lower than 95%. Weigh the monthly saving against rising prices and rent paid while you wait.
Can my deposit be a gift from family?
Most lenders accept gifted deposits from close family with a short gift declaration confirming it's not a loan.
Why are low-deposit mortgage rates higher?
A smaller deposit means less equity buffer for the lender, so they price in the extra risk with a higher rate.
Are low-deposit mortgages harder on flats or new builds?
Sometimes — some lenders cap LTV on flats and new-build apartments. A broker knows which lenders are comfortable with your property type.