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Yes—some UK buyers can get a mortgage with a deposit as small as 5%, but that is a possible starting point, not a guarantee of approval. You still need to meet a lender’s affordability and property criteria. Borrowing a larger share of the home’s value can also mean fewer deals, higher borrowing costs and less protection if prices fall.
How small a deposit can you use?
MoneyHelper says buyers usually need a deposit of 5% to 10%. For a £250,000 home, that would be £12,500 to £25,000. This is a general illustration, not a promise that a lender will approve a mortgage at either level. You also need to meet the lender’s criteria and account for buying costs.
A 5% deposit means borrowing 95% of the property’s value: a 95% loan-to-value ratio (LTV). A 10% deposit means 90% LTV. The lower your deposit, the larger your mortgage is relative to the property value. MoneyHelper explains how deposits affect mortgage borrowing.
What are the trade-offs of a small deposit?
Potentially higher borrowing costs
Low-deposit mortgages are likely to cost more because their rates can be higher, and the choice of deals may be narrower. A larger deposit lowers your LTV and usually improves the deals available. MoneyHelper says 60% LTV—a 40% deposit—typically attracts some of the most competitive rates, but that general guidance is not a promise of a particular rate or lender offer. Compare current rates, fees, monthly payments and the total cost over the deal period.
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Less equity if property prices fall
Your deposit is your starting equity in the home. With a small deposit, a fall in the property’s value can leave you owing more than the home is worth: this is negative equity. It may make selling or remortgaging more difficult, particularly if you need the sale proceeds to repay the mortgage.
Could the UK Mortgage Guarantee Scheme help?
The permanent 2025 Mortgage Guarantee Scheme, available from July 2025, is intended to support participating lenders offering mortgages at 91% to 95% LTV. That range corresponds to deposits of 5% to 9%. The government guarantee covers part of a participating lender’s potential losses; it does not insure the borrower against missed payments or reduce the debt owed.
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MoneyHelper describes the scheme as a possible route for first-time buyers and home movers purchasing their main home with a capital-repayment mortgage at 90% to 95% LTV. Among the listed exclusions are shared ownership, second or additional homes, commercial or buy-to-let property, and interest-only, offset or guarantor mortgages. Check the current consumer guidance, scheme rules and participating lender status before relying on this route.
Scheme backing does not guarantee a mortgage. Under the official scheme rules, lenders must still assess affordability, verify income and consider committed and essential spending and living costs. They must also stress-test affordability against future interest-rate rises.
Is a 5% deposit enough to qualify?
It may meet the minimum deposit for some available mortgages, but deposit size is only one part of a lender’s decision. Approval depends on the lender’s criteria, your finances and the property. Even if a scheme covers the loan-to-value band, it does not replace affordability checks. Ask lenders or a qualified mortgage adviser to assess your circumstances and compare the full costs rather than focusing on the deposit alone.
What about the proposed Your First Home scheme?
On 26 September 2026, the government announced that Your First Home was expected to offer eligible first-time buyers in England a route to a new-build home with a 2.5% deposit and a 20% government-backed equity loan, through a participating developer. The announcement also anticipated an initial interest-free period.
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At the time of that announcement, the household income limit, local property price caps, costs and implementation details were still due to be set out at the following month’s Budget. Treat this as a proposed scheme with terms pending, not an available mortgage offer. It was described for England, so it should not be assumed to apply across the UK.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What other routes might be relevant?
Shared ownership and nation-specific support may be worth exploring, but they work differently from an ordinary low-deposit mortgage and have their own property and eligibility conditions. MoneyHelper lists schemes including Help to Buy–Wales and Homebuy–Wales. Check which options are available where you plan to buy and whether their conditions fit your circumstances.
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How to compare your options
- Work out your deposit and likely LTV. Divide the amount you need to borrow by the property value. For example, borrowing £237,500 on a £250,000 home would be 95% LTV, before considering fees or any change to the valuation.
- Check eligibility before planning around a scheme. Confirm buyer status, main-home use, mortgage repayment type, property restrictions and whether a lender participates. For proposed schemes, wait for confirmed terms.
- Compare the full borrowing cost. Look at the interest rate, fees, monthly repayment and total cost over the relevant deal period—not just the deposit required.
- Stress-test your budget. Consider whether payments remain manageable if rates rise or household costs change, and keep enough cash for costs beyond the deposit.
- Consider your flexibility. Think about how a price fall could affect your ability to sell or remortgage, and whether saving for a larger deposit is practical compared with buying sooner.
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