First time buyers
Low deposit mortgages
Buying with a smaller deposit is possible, but it can affect the rates and lenders available to you. Tony explains your options and compares lenders from over 100, so you know where you stand before you start viewing homes.
Talk to TonyAt a glance
- A smaller deposit can mean fewer lenders and higher rates
- Access to 100+ lenders and around 28,000 deals
- Rated 5.0 from 235+ Google reviews
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
How a low deposit works
Your deposit is compared with the price of the property to give a loan-to-value (LTV). The higher the LTV, the more closely lenders may look at your application.
Good to know
Things to consider
- A smaller deposit usually means a higher interest rate than a larger one, so check what you could afford each month.
- Saving a little more can sometimes move you into a lower LTV band, which may open up better-priced options. An adviser can show you where those bands are.
- A gifted deposit may be an option if family can help. See our gifted deposit page.
- Scotland has its own taxes and buying process, including LBTT and the Home Report, and first-time buyers may qualify for relief. Ask us what applies to you.
Meet your adviser
Hi, I'm Tony Flynn
I'm a mortgage and protection adviser based in Carluke, helping people across Lanarkshire and Scotland.
I've spent 15+ years in finance and have been named Mortgage Professional of the Year at the Prestige Awards Scotland five years in a row. I'll explain your options in plain English so you know exactly where you stand.
Low deposit questions
What is the smallest deposit I can use?
Some lenders will consider deposits of 5% of the purchase price, but availability and criteria vary and nothing is guaranteed. Tony can check which lenders may suit you.
Is it harder to get a mortgage with a low deposit?
It can be, because fewer lenders offer high LTV mortgages and affordability and credit checks can be stricter. Speaking to an adviser early helps.
Can my family help with the deposit?
Some lenders accept a gifted deposit from close family, usually with a signed letter confirming it does not need to be repaid. See our gifted deposit page.
Do I need a bigger deposit for a new build?
Some lenders have different rules for new builds, including maximum LTVs. Tony can explain what applies to the property you are looking at.
Do you charge a fee for mortgage advice?
There may be a fee for mortgage advice. The amount depends on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. We will explain this before you commit.
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Ready to talk it through?
A quick chat with Tony is a good first step. No jargon, no pressure.
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