Buying a home is one of the biggest financial decisions you’ll ever make – but saving for a large deposit can be a major obstacle, especially in today’s market. The good news? There are options out there if you’re buying with a small deposit.

At Path Mortgages, we work with first-time buyers, second-steppers and growing families every day – and we know how to match you with lenders who are open to low-deposit applications. Whether you’ve saved 5% or 10%, here’s what you need to know.

What is a Low Deposit?

A low deposit typically means anything under 15%, with 5% and 10% deposits being the most common among first-time buyers. For example, if you’re buying a £200,000 home, a 5% deposit would be £10,000.

What Are Your Options with a Low Deposit?

1. 95% Mortgages

Some mainstream lenders now offer 95% loan-to-value (LTV) mortgages again. These can be available on both fixed and variable deals, though the rates may be higher than with a larger deposit.

2. Family Support / Guarantor Mortgages

If a family member is willing to help, there are products like family deposit mortgages where a loved one offers savings or equity in their own home as security – without handing over cash.

3. Shared Ownership

This part-buy, part-rent scheme allows you to buy a share of a home (usually 25%-75%) and pay rent on the rest. Your deposit is based on the share you buy, so it can be significantly lower than for a full market purchase.

4. Deposit Unlock Scheme

Designed for new builds, this scheme allows you to buy a newly built home with just a 5% deposit – even if you’re not a first-time buyer.

5. Gifted Deposits

If your deposit is being gifted by a family member (often referred to as the ‘Bank of Mum and Dad’), that’s acceptable to many lenders – as long as it’s declared properly and the gift is unconditional.

How Path Mortgages Can Help

We specialise in helping buyers with small deposits navigate the mortgage market. Here’s how we make the process easier:

  • Access to lenders who welcome 5–10% deposit buyers
  • Clear, honest advice with no jargon
  • Help understanding your affordability and credit position
  • Fast-tracked agreements in principle to help you offer with confidence

Can You Boost Your Deposit?

While we help people secure mortgages with what they have now, here are a few quick wins to boost your deposit savings:

  • Use a Lifetime ISA (LISA) – the government will top up your savings by 25%
  • Cut back subscriptions and non-essentials (even for a few months)
  • Use cashback/reward apps to stretch every pound