For many first-time buyers, saving for a mortgage deposit is one of the biggest hurdles to homeownership. With rising property prices and cost-of-living pressures, it’s no surprise that more buyers are looking for ways to get on the ladder with less upfront cash. That’s where low-deposit mortgages come in, a lifeline for first-time buyers ready to make their move.
What Is a Low Deposit Mortgage?
A low deposit mortgage allows you to buy a property with as little as 5% of the purchase price saved as a deposit. Instead of needing tens of thousands of pounds upfront, this type of mortgage lets you access the market sooner, without waiting years to build a large savings pot.
For example, with a 5% deposit on a £200,000 home, you would need to save £10,000 rather than £20,000. The lender would then cover the remaining 95% through the mortgage loan.
Who Are Low Deposit Mortgages For?
These mortgages are designed with first-time buyers in mind. They’re ideal if you:
- Have a smaller savings pot
- Are ready to stop renting and start investing in your future
- Need to move quickly due to life changes or new job locations
- Want to take advantage of government schemes that support low deposit borrowing
Many lenders now offer specific products tailored to new buyers, with competitive rates and incentives like cashback or free valuations.
What Options Are Available?
Low-deposit mortgages can come in a few different forms, including:
- 95% Loan-to-Value (LTV) Mortgages: Standard low deposit option where you put down 5%.
- Shared Ownership: Buy a share of a property and pay rent on the rest, reducing your required deposit.
- Government Mortgage Guarantee Scheme: Designed to encourage lenders to offer more 95% LTV products.
- First Homes Scheme: Offers discounts to eligible buyers on new-build homes.
At Signature, we can help you navigate which route suits your circumstances best and explain the long-term implications of each.
The Rise of No-Deposit Mortgages
In 2025, we’ve seen a major development for first-time buyers with the launch of 100% LTV (no-deposit) mortgages, a significant step forward for those struggling to save even a 5% deposit.
April Mortgages now offers a no-deposit mortgage aimed at renters who can afford monthly payments but don’t have savings or family support. They offer to lend up to 100% of a property’s value over fixed terms of 10 or 15 years. They also have no early repayment charges for moving home or redeeming with personal funds.
Gable Mortgages has also entered the market with a similar 100% LTV product, specifically targeting ‘generation rent’ — renters who can afford monthly costs but can’t get over the deposit hurdle.
Additionally, Hanley Economic Building Society offers a 100% mortgage for renters who can show 12 months of consistent rent payments, providing yet another route into the property market for those without savings.
What’s the Catch?
Low deposit mortgages often come with:
- Higher interest rates compared to larger deposit loans
- Stricter affordability checks
- Fewer lender choices, though this is improving
That said, with the right broker and a tailored approach, many of these challenges can be mitigated.
Why Work with a Mortgage Broker?
It’s important to note that many of these no-deposit mortgage products are broker-exclusive. They aren’t available on the high street or through direct applications, which highlights the value of working with a mortgage broker.
At Signature, we give you access to:
- Broker-only deals from lenders like April and Gable
- Expert guidance through complex affordability criteria
- The latest products tailored to renters, first-time buyers, and non-traditional borrowers
- Trusted relationships with specialist lenders
In a fluctuating mortgage market, working with a broker means you won’t miss out on the best available options.
How Signature Can Help
As a first-time buyer, you’ll want expert guidance to ensure you’re getting the most suitable and affordable mortgage deal. At Signature, we work with a wide range of high street banks and specialist lenders to find solutions that fit your goals.
We’ll help you:
- Understand how much you can borrow
- Explore your eligibility for government schemes
- Compare deals across the market
- Prepare your application for a smooth approval process
Ready to Get Started?
You don’t need to go it alone. Whether you’ve already saved your deposit or you’re just starting to explore your options, we’re here to help you make your first move with confidence. Speak to one of our advisers today and take that first step onto the property ladder.
