5% Deposit Mortgages
Buying With a 5% Deposit in Scotland
You do not always need a big deposit to buy your first home. Many lenders offer 95% mortgages. Here is what a 5% deposit can buy, what lenders look for, and how to make it go further.
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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.
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What 5% Gets You
A Small Deposit Can Still Open the Door
With a 5% deposit, you borrow the other 95%. As a rough guide:
- ✓£5,000 deposit: a home up to around £100,000
- ✓£7,500 deposit: a home up to around £150,000
- ✓£10,000 deposit: a home up to around £200,000
- ✓Plus costs: budget for solicitor fees and any LBTT on top
How We Help
How to Buy With 5%
Five things that make the difference.
Check Affordability
Lenders are stricter at 95%. Your income, outgoings and credit all matter more.
Watch the Home Report
Lenders lend on the Home Report value. Offer over it and the difference comes from your pocket.
Use a Gift
A gifted deposit from family is accepted by most lenders with the right paperwork.
New Builds Can Differ
Some lenders want a bigger deposit on new build flats. We will check before you reserve.
Pick the Right Lender
Rates and criteria vary a lot at 95%. We compare them so you do not have to.
Your Options
Ways to Make a Small Deposit Work
There is usually more than one route. We will help you find yours.
95% Mortgages
The standard route. Available from lots of lenders for first time buyers and movers.
Check My Options →Gifted Deposits
Family can gift some or all of your deposit. It must be a gift, not a loan.
Talk It Through →LIFT Shared Equity
The Scottish Government can own part of the home so you need a smaller mortgage.
Get Straight Advice →Family Support Mortgages
Some lenders let a family member's savings or income help you borrow more.
Book a Chat →Saving a Bit More
Getting to 10% can unlock better rates. We will show you the difference.
Ask a Question →Offers Over
In Scotland, offering over the Home Report means you need more than 5% of the price.
Talk It Through →Common Questions
5% Deposit Mortgage Questions, Answered
The things first time buyers ask us most.
Can I get a mortgage with a 5% deposit in Scotland?
Yes, many lenders offer 95% mortgages. You will need to pass their affordability and credit checks.
What can I buy with a £5,000 deposit?
With 5%, a £5,000 deposit could buy a home up to around £100,000, if you can borrow the rest. You will also need money for fees and LBTT if the price is over £175,000 as a first time buyer.
Are 5% deposit mortgages more expensive?
Rates are usually higher than at 10% or 15% deposit, but the gap varies. We compare them for you.
Does my 5% need to be on the Home Report value?
Lenders lend on the lower of the price or the valuation. If you offer over the Home Report, you need 5% of the valuation plus the extra you are paying.
Can my deposit be a gift?
Yes, most lenders accept gifted deposits from family with a signed gift letter and proof of where the money came from.
Can I buy a new build with 5%?
Often, yes, especially houses. Some lenders want more for new build flats, so check before you reserve.
Related guides
- How much to offer on a house in Scotland
- LIFT shared equity scheme
- Gifted deposit mortgages
- All mortgage questions answered
Written by Tony Flynn, mortgage broker at Tony Flynn Mortgages, helping homebuyers across Lanarkshire and Scotland. This page is general information, not personal advice. Speak to Tony about your own circumstances.
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