How to Get a Mortgage with a Small Deposit

Think you need a huge deposit to buy your first home?

Not anymore. Many lenders now accept 5% deposits, and government-backed schemes have made homeownership more achievable than ever.

Whether you’re a first-time buyer or moving home, this guide explains how to get a mortgage with a small deposit — and how Mortgage Knight can help you find lenders who say yes.

How Small Deposit Mortgages Work

A small deposit mortgage lets you buy a home with as little as 5% of the purchase price, borrowing the remaining 95%.

These are often called 95% Loan-to-Value (LTV) mortgages.

Example:

Property price: £200,000

Deposit: £10,000 (5%)

Mortgage: £190,000 (95%)

Lenders assess your income, credit score, and affordability to make sure repayments are manageable.

If you meet the criteria, you could be approved with only a small deposit.

Which Lenders Offer Small Deposit Mortgages

Several high-street and specialist lenders provide 95% LTV mortgages, including:

Halifax
Nationwide
NatWest
HSBC
Skipton Building Society (including track record mortgage for renters)

Some lenders participate in the Mortgage Guarantee Scheme, backed by the government, which helps them accept smaller deposits without extra risk.

Who Qualifies for a Small Deposit Mortgage

You’re more likely to be approved if:

You have a steady income (employed, self-employed, or contract).
Your credit history is clean or only lightly marked.
You have a strong rental or saving history.

Even if you’re self-employed or have limited credit, Mortgage Knight can match you with lenders that take a flexible approach.

Tips to Improve Approval Odds

Having a small deposit means your application will be scrutinised a bit more closely.

Here’s how to boost your chances:

Check your credit file — fix errors and clear small debts.
Keep spending consistent in the months before applying.
Avoid large new credit commitments (like car finance).
Show proof of regular savings or rent payments.

These help demonstrate reliability — the number-one thing lenders want to see.

Alternatives if You’re Struggling with Deposit Size

If your deposit is still short, you may qualify for other routes:

Family or Guarantor Mortgages

A family member uses savings or property equity as security.

These can reduce the deposit needed — or remove it entirely.

Shared Ownership

Buy a percentage of a property (e.g. 25–75%) and pay rent on the rest.

You can “staircase” up to full ownership later.

First Homes Scheme

Discounted homes for first-time buyers and key workers, often 30% below market value.

Gifted Deposits

Most lenders accept gifts from close family, provided they’re not repayable loans.

How Mortgage Knight Helps

We work with over 90 UK lenders, many of which accept:

5% deposits
Gifted funds
Applicants with modest credit histories

We’ll help you:

Find the most competitive small-deposit deals.
Avoid lenders with strict affordability limits.
Handle your application end-to-end for faster approval.

Case Studies

Case Study 1: Ellie – First-Time Buyer with 5% Deposit

Ellie had £11,000 saved. Mortgage Knight secured her a Halifax mortgage under the government guarantee scheme, and she bought her first home in Kent within 8 weeks.

Case Study 2: Luke & Hannah – Gifted Deposit from Family

They used a £15,000 gift from parents as their deposit. We helped them find a NatWest mortgage accepting gifted funds with no extra restrictions.

Case Study 3: Maria – Renting History Used to Qualify

Maria had rented for 5 years with consistent payments. Using Skipton’s track record mortgage, she bought her first flat without needing a deposit at all.