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LOW DEPOSIT MORTGAGE SCHEMES
What Are Low Deposit Mortgage Schemes?
Low deposit mortgage schemes are designed to help first‑time buyers get on the property ladder with a smaller upfront deposit. Instead of needing 10–20%, these schemes can make buying possible with just 5%, depending on your circumstances and the lender’s criteria.
They’re ideal if you have a stable income but haven’t been able to save a large deposit and they can significantly speed up your home‑buying journey.
Ready to explore low deposit mortgage options?
We’ll help you understand your eligibility, compare lenders, and find the right scheme for your budget all completely fee‑free.
Book a free appointment below and get personalised advice from an independent, FCA‑regulated mortgage expert.
Types of Low Deposit Mortgage Schemes in the UK
5% Deposit Mortgages (95% LTV)
Many lenders now offer 95% mortgages, meaning you only need a 5% deposit. These are available to first‑time buyers and home movers, and rates vary depending on your credit profile and income.
Best for: Buyers with strong affordability but limited savings.
First Homes Scheme
A government scheme offering new‑build homes at 30–50% below market value for local first‑time buyers and key workers.
Benefits:
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Lower purchase price
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Lower deposit
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Lower mortgage amount
Mortgage Guarantee Scheme (Government‑Backed)
The UK Government’s Mortgage Guarantee Scheme encourages lenders to offer 95% mortgages by providing them with partial protection.
Key points:
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Only a 5% deposit needed
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Available on homes up to £600,000
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For first‑time buyers and home movers
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New builds and buy‑to‑lets are excluded
Deposit Boosting Options
These aren’t schemes, but they help buyers with smaller deposits qualify for better rates:
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Gifted deposits
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Family springboard mortgages
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Joint borrower, sole proprietor (JBSP)
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Lifetime ISA (LISA) bonus
Shared Ownership
Shared Ownership lets you buy a percentage of a property (usually 10–75%) and pay rent on the rest. This reduces the deposit needed because it’s based only on the share you’re buying.
Example: Buy 25% of a £200,000 home → deposit needed is only 5% of £50,000 (£2,500).
Who Can Benefit From Low Deposit Mortgages?
These schemes are ideal for:
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First‑time buyers with limited savings
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Renters struggling to save while paying high rent
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Buyers with strong affordability but low deposit
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Key workers and local residents (First Homes Scheme)
What You Need to Qualify
Lenders typically look at:
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Income and affordability
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Credit history
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Deposit amount
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Employment status
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Property type
Even if you’ve had credit issues, there are lenders who specialise in helping first‑time buyers with smaller deposits.
Low deposit schemes can be confusing and not every lender offers every option. As an independent, fee‑free adviser, Well Financial can:
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Compare deals across the whole market
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Check your eligibility before you apply
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Help you avoid declines that could affect your credit
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Explain which scheme suits your situation
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Support you from application to completion
Why Speak to an Independent Mortgage Adviser?
"Want to say a big thank you to Jake for all of his support he continues to give us. Not only with securing us an amazing mortgage deal but guiding us as absolutely clueless first time buyers through the process with such kindness and patience!"⭐⭐⭐⭐⭐
"I was incredibly impressed by his personable nature and genuine willingness to help. He consistently goes above and beyond" ⭐⭐⭐⭐⭐
"He was great in getting us the best deal that he could. He puts customer service above everything else and his approach is very personable. Quick to respond and will happily talk through any questions you have"⭐⭐⭐⭐⭐
Call us on 0800 0385 556 or book online for a no obligation initial consultation
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Low Deposit Mortgages, What are they?
Here, Sean introduces low deposit mortgages. Sean has helped hundreds of first time buyers secure their dream property with the right mortgage throughout Colchester, Essex and beyond. With whole‑of‑market access and years of experience, he guides you from your first enquiry to completion with clear, friendly support.
First‑Time Buyer Mortgages Made Simple
Buying your first home is a big moment but it doesn’t have to feel confusing or overwhelming. Whether you’re just starting to explore your options or you’re ready to take the next step, we’re here to make the process clear, calm, and genuinely supportive.
At Well Financial, we specialise in helping first‑time buyers understand how much they can borrow, what their monthly payments might look like, and what steps come next.
Start With Instant Clarity: Free Mortgage Calculator
Before you speak to anyone, you can use our free online mortgage calculator to get a quick idea of:
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how much you could borrow
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what your monthly mortgage payments might be
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how different deposits or terms affect affordability
No email address. No personal details. No sign‑up. Just fast, honest numbers to help you plan your first home with confidence.
This tool is perfect if you’re comparing options, working out your budget, or simply want to understand what’s realistic before taking the next step.