If you’re looking to get onto the property ladder, one of the biggest challenges is saving a deposit.
But here’s the good news — you may not need as much as you think.
Across Hinckley, Burbage, Nuneaton and the wider Leicestershire area, low deposit mortgages are helping more buyers secure their first home sooner.
In this guide, we’ll explain how low deposit mortgages work, what your options are, and how to put yourself in the best possible position.
What Is a Low Deposit Mortgage?
A low deposit mortgage allows you to buy a property with a smaller upfront deposit — typically 5% or sometimes less depending on your circumstances & the lender.
For example: This means you could buy a £200,000 property with just a £10,000 deposit, subject to affordability and lender criteria.
How Do Low Deposit Mortgages Work?
The smaller your deposit, the higher the loan-to-value (LTV) of your mortgage.
For example:
5% deposit = 95% mortgage (95% LTV)
10% deposit = 90% mortgage (90% LTV)
Lenders assess your income, credit history and overall financial position to determine whether you qualify.
What Options Are Available?
There are several routes available for buyers with smaller deposits:
95% Mortgages
Widely available through a range of lenders, these remain one of the most common entry points for first-time buyers.
£5,000 or £10,000 Deposit Mortgages
May be suitable for those who have some savings but want to get onto the ladder sooner rather than later and these deposit amounts are smaller than a 5% deposit.
Renter Track Record Mortgage
These mortgages are for those currently in rented accommodation and can prove they have paid their rent on time for the last 2 months. For some applicants, no deposit is needed. You can put down anything from 0% to 4.99% deposit with this type of mortgage.
Family Support Mortgages
Some lenders allow a family member to support your application, helping improve affordability or reduce risk.
Shared Ownership or Shared Equity Schemes
In some cases, buying a share of a property can reduce the deposit required. You can read more about these schemes on another of our blogs by clicking here.
Who May Low Deposit Mortgages Be Suitable For?
– A first-time buyer
– Currently renting and struggling to save
– Early in your career with strong income potential
– Keen to buy before property prices move further
Advantages of Low Deposit Mortgages
Gets you on the Property Ladder Sooner
Instead of waiting years to save a larger deposit, you can buy earlier and start building equity.
Keep Savings for Other Costs
Buying a home involves additional expenses such as legal fees, surveys and moving costs.
Competitive Mortgage Options Available
While rates can differ, there are competitive products available in this space.
Disadvantages of Low Deposit Mortgages
Higher Monthly Payments
Borrowing more means your monthly repayments may be higher.
Interest Rates May Be Higher
Lower deposit deals can come with slightly higher rates compared to larger deposits.
Stricter Lending Criteria
Lenders may apply tighter checks to ensure affordability.
How to Improve Your Chances of Approval
If you’re aiming for a low deposit mortgage, there are steps you can take to strengthen your application:
– Check and improve your credit score
– Reduce any existing debt where possible
– Keep your spending consistent and manageable
– Avoid missed payments
A mortgage broker like us can guide you on this before you apply.
Why Use a Mortgage Broker for Low Deposit Mortgages?
When your deposit is smaller, choosing the right lender becomes even more important.
A mortgage broker like us can:
– Access a wider range of lenders
– Match you with lenders suited to your situation
– Help you avoid declined applications
– Guide you through the entire process
You can read our blog on using a mortgage broker by clicking here.
Local Mortgage Advice in Hinckley
At One Roof Financial, we help buyers across Hinckley and Leicestershire navigate the mortgage process with confidence.
We understand the challenges first-time buyers face and work with you to find a solution that fits your situation.
Whether you’re just starting out or ready to apply, we’re here to help.
Speak to a Mortgage Adviser Today
If you’re looking to buy with a smaller deposit, we can help you explore your options.
Call 01455 63 61 63
Visit https://onerooffinancial.co.uk/contact/
Your home may be repossessed if you do not keep up repayments on your mortgage.
Blog written 16/07/2026
The information contained within this blog was correct at the time of publication (16/07/2026), and is subject to change.
