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What options do I have if I have a low deposit?

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What options do I have if I have a low deposit? image

What options do I have if I have a low deposit?

Charlie Connolly explains what mortgage options are available if you have a low deposit.

Can I get a mortgage with a low deposit? Can I get a mortgage with less than 5% deposit?

Yes, it’s possible to get a mortgage with a low deposit, and there are even options for less than 5% at the moment. However, these options are limited, and they do come with stricter criteria [information correct at the time of recording in February 2026].

What are the requirements of getting a mortgage if I have a low deposit or low income?

Getting a mortgage on a low income is definitely a possibility, but lenders may apply stricter criteria to make sure you can afford the repayments.

What low deposit schemes are available?

As we speak today in February 2026, various lenders are now offering small deposit schemes such as Santander’s 98% mortgage, although this requires a minimum deposit of £10,000.

There are other schemes available as well, such as the Skipton Track Record mortgage, where no deposit is required. These low deposit schemes do have specific criteria to meet.

What do I do if I don’t have a deposit? Can I get a mortgage with no deposit?

There are options available, but they come with stricter criteria. It’s best to speak to a mortgage broker and see if you would be eligible for these products.

Can my parents lend me money for a house deposit?

Absolutely, your parents can give you money for a deposit. It’s very common and is called a gifted deposit. Most lenders will not accept deposits from friends – it would usually need to come from parents, grandparents, and siblings.

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Can I get a mortgage if I have a low deposit as a first-time buyer?

Yes, you can get a mortgage with a low deposit as a first-time buyer in the UK, but it will depend on your affordability, your credit history, and the price of the property you’re purchasing.

Can I get a mortgage with a low deposit if I have bad credit?

Potentially, yes. However, it could be much harder to get a mortgage if you have a low deposit plus bad credit. It depends on how bad your credit is and how much deposit you have. It could also depend on how minor or old your credit problems are.

Can I get a Buy-to-Let mortgage with a low deposit?

To purchase a Buy-to-Let, you normally need to put down at least 25%. That will give you a wide range of lenders, but a few would also consider a 20% deposit.

With a Buy-to-Let mortgage, you have to meet a rental stress test, so getting the mortgage is all about how much rent the property will generate.

Do you have any tips for people with a low deposit?

Getting a residential mortgage with a small deposit can be done, but you need to plan for it in the right way.

If you’re a first-time buyer, you should make use of the Lifetime ISA, which gives you an additional 25% on top of your savings each year. You can save up to £4,000 per annum in the Lifetime ISA and get a £1,000 bonus each year.

It’s also important to keep your credit file clean. Pay your bills on time, register to vote, and try to keep your credit use below 30%. Also, don’t apply for lots of new credit. All of this will put you in a better position for when the time is right for you.

How can a broker help me with a mortgage on a low deposit?

If you’re looking to purchase a property and you don’t think you’ve got enough deposit, speak to a broker. We can tell you what schemes are available at that specific time.

We can also give you tips and guidance on how to move forward. It’s always good to speak to a professional and get the right advice.

Key Takeaways:

  • It is possible to get a mortgage with a low deposit, and options for less than 5% or even zero deposit exist, though they are limited and come with stricter criteria.
  • Specific small deposit schemes available (as of February 2026) include Santander’s 98% mortgage, which requires a minimum deposit of £10,000, and the Skipton Track Record mortgage, which requires no deposit.
  • Lenders commonly accept a ‘gifted deposit’ from parents, grandparents, or siblings, but most will not accept deposits from friends.
  • First-time buyers should utilise the Lifetime ISA, which provides an additional 25% on top of savings each year (up to a £1,000 bonus on a £4,000 saving).
  • While low-income or bad-credit applicants can still get a mortgage, lenders apply stricter criteria. There are alternative lenders for bad credit, but they may require a bigger deposit.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY-TO-LET MORTGAGES.

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