It’s easy to say, but much harder to do when you’re balancing rising rent and the cost of living. But the landscape has shifted. Several leading lenders have launched innovative low-deposit mortgages that mean eligible buyers could secure a home with as little as a £5,000 personal deposit.

Why is this such big news?

Traditionally, even a "low" 5% deposit on a £300,000 property meant saving £15,000. For many, the monthly mortgage payment was never the hurdle—it was that initial lump sum.

Now, two distinct types of products are making waves:

1. The £300k Price-Capped Scheme: Designed for those with strictly £5k and looking at properties up to £300,000. This is a 98.33% loan-to-value (LTV) mortgage where the deposit must be your own savings (no gifts).

2. The 99% LTV Scheme: For those looking at homes up to £500,000, this product allows you to borrow 99% of the value. Unlike the first option, this often does allow gifted deposits from family.

What you need to know

These products are exciting, but they are "niche" and come with specific boundaries:

• Property Restrictions: These mortgages are typically for existing houses and flats only. Most currently exclude new-build properties and new-build conversions.

• Credit Strength: Because the lender is taking a higher risk by lending 99%, you will need a very strong credit score to qualify.

• Maximum Loans: Limits vary between lenders, with some capping the purchase price at £300,000 and others going up to £500,000.

• Fixed Rates: Most of these are 5-year fixed-rate products, giving you certainty over your payments during the initial years.

Is there a catch?

No. There isn’t a "catch," but there are higher risks to consider with any high-LTV mortgage:

• Negative Equity Risk: Because you start with very little equity (1% to 2%), if house prices fall even slightly, you could owe more than the property is worth. This can make it difficult to remortgage or move home until prices recover.

• Cost of Interest: Generally, the higher the LTV, the higher the interest rate. You’ll likely pay more per month than someone with a larger deposit.

Moat Mortgages is here to guide you.

With lenders all setting different criteria, some accepting gifted deposits, others requiring personal savings, finding the right route with a £5k deposit can be complicated. That’s where we make the difference:

• We filter the fine print: We know which lenders exclude specific property types like flats or new builds, saving you from a "No" before you even apply.

• Protecting your credit score: We use "soft search" tools to check your eligibility across multiple lenders without leaving a footprint on your credit file.

• Expert application packaging: High-LTV applications are scrutinised heavily. We handle the heavy lifting and paperwork to give you the best chance of a "Yes" the first time.

• Total market view: If a traditional 5% deposit deal is actually better for your wallet in the long run, we’ll tell you. We're here to find the right deal, not just the one in the headlines.

• Zero cost to you: You get expert, whole-of-market advice and a dedicated case manager for £0. Our service is completely free.