It’s easy to say, but much harder to do when balancing rising rents and the cost of living. However, the mortgage landscape has shifted. Several leading lenders have launched innovative low-deposit products that allow eligible buyers to secure a home with as little as a £5,000 deposit.

Why is this such big news?

Traditionally, even a "low" 5% deposit on a £300,000 property required £15,000 upfront. For many, the monthly mortgage payment was never the hurdle—it was that initial lump sum. Now, two distinct routes are available:

The £300k Capped Scheme: Designed for properties up to £300,000. This requires a personal deposit (savings) of at least £5,000. Note: Gifted deposits from family are generally not permitted for this specific product.

The 99% LTV Scheme: For properties up to £500,000, this product allows you to borrow up to 99% of the value.Unlike the capped scheme, this version often permits gifted deposits from immediate family members.

What you need to know

These products are innovative but "niche." To qualify, you must meet specific boundaries:

Property Type: These mortgages are generally for existing houses (and some flats, depending on the lender). Most currently exclude new-build properties and new-build conversions.

Credit Strength: Because the lender is taking a higher risk at 99% LTV, you will typically need an enhanced credit score to qualify.

Residency: At least one applicant must be a first-time buyer, and the property must be your only residence.

Considerations & Risks

As with any high loan-to-value (LTV) mortgage, there are trade-offs to consider:

Negative Equity Risk: Starting with 1% or 2% equity means that if house prices fall, you could owe more than the property is worth. This may limit your ability to remortgage or move until prices rise or you pay down more of the loan.

Interest Costs: Interest rates for 99% LTV products are typically higher than for those with a 5% or 10% deposit.You will pay more over the term of the mortgage for the benefit of the lower upfront cost.

Moat Mortgages: Your Expert Guide

Finding the right £5k deposit route is complex because lender criteria vary wildly on things like flats, gifted money, and income multipliers.

Filtering the Fine Print: We know which lenders exclude specific property types, saving you from unnecessary credit "hard searches" and rejections.

Comprehensive Market View: If a traditional 5% deposit deal—or a scheme like Own New for new builds—is better for your long-term finances, we will tell you.

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