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If you’ve managed to save a 5% deposit, you’ve got more options than you might think. Many lenders now offer 95% LTV mortgages as standard, but there are also several government-backed schemes that can help buyers purchase a home with a small deposit.
This guide breaks down what’s currently available, who qualifies, and how each scheme works — plus a few smart alternatives if you don’t quite fit the criteria.
At Strive, we specialise in high loan-to-value mortgages and love helping buyers make their 5% deposit go further.
Mortgage Guarantee Scheme
The Government’s Mortgage Guarantee Scheme is one of the main ways to buy a home with a 5% deposit.
Here’s how it works: the government guarantees a portion of the loan to the lender, reducing their risk if you were ever to default. This means lenders are more comfortable offering 95% mortgages, even to first-time buyers with smaller deposits.
A few key details:
- It’s open to first-time buyers and home movers.
- The property must cost £600,000 or less.
- It can’t be a new build.
- Standard affordability and credit checks still apply.
You can find full details on the government’s website:
2025 Mortgage Guarantee Scheme (gov.uk)
First Homes Scheme
If you’re buying a new build and are a first-time buyer, the First Homes Scheme could be ideal.
It offers a minimum 30% discount on the market value of the property, meaning your 5% deposit goes much further. You can often buy a new build home with less than a 10% deposit while keeping your monthly payments affordable.
The scheme is aimed at local residents, key workers and those on modest incomes, with price caps depending on the region.
Outstanding service and clear communication are at the core of what we do. But don’t just take our word for it—read firsthand experiences from our clients and discover why they rate us a 5-star mortgage broker.
Right to Buy
If you’re currently renting your home from a local authority or housing association, the Right to Buy scheme allows you to purchase it at a significant discount — sometimes large enough to cover all or part of your deposit.
In some cases, buyers have managed to purchase with less than 5% out of pocket, using the discount to bridge the gap.
It’s one of the most powerful options available for council tenants looking to step onto the property ladder with minimal upfront savings.
Alternatives to Government Schemes
Even if you don’t qualify for a government-backed scheme, there are still plenty of ways to buy a home with a small deposit — and in some cases, even less than 5%.
Lenders and developers have become increasingly flexible, offering innovative ways for buyers to get on the ladder sooner. Here are some of the most popular routes available right now.
100% Mortgages –Skipton’s Track Record Mortgage
If you haven’t been able to save a deposit, there’s still hope. Skipton Building Society’s Track Record Mortgage offers a genuine 100% mortgage, meaning you don’t need any deposit at all.
It’s designed for renters who have a solid track record of paying rent on time but haven’t managed to build savings for a deposit. Instead of judging you purely on what you’ve saved, Skipton looks at your rental payment history and general financial conduct.
To qualify, you’ll usually need to have:
- A minimum 12-month record of consistent rent payments
- A clean credit history and stable income
- A mortgage payment that won’t exceed your average monthly rent
It’s one of the first products of its kind in years and can be a lifeline for renters who can clearly afford homeownership but have struggled to save due to rising living costs.
While 100% mortgages are rare and come with tighter criteria, Skipton’s approach has opened the door for many first-time buyers who previously thought they’d be renting forever.
Shared Ownership
If affordability is the main barrier, Shared Ownership is another way to buy with a small deposit.
You purchase a share of a property (typically between 25% and 75%) and pay rent on the remainder. This can reduce both the deposit and monthly costs, and you can increase your ownership share later through “staircasing.”
While technically not a government scheme, it’s backed by government support and offers one of the lowest entry points to homeownership.
Developer Discounts and Incentives
If you’re buying a new build, some developers offer gifted deposits or discounts off the market value — effectively boosting your deposit size.
For example, a developer might sell a £300,000 home for £285,000. That 5% discount can combine with your own 5% deposit, allowing you to qualify for 90% LTV rates instead of 95%, which usually come with lower interest rates and wider lender choice.
You can read more in our New Build Mortgage Guide.
Joint Borrower, Sole Proprietor (JBSP) Mortgages
If your income alone isn’t enough to pass affordability checks, a JBSP mortgage lets a family member (often a parent) go on the mortgage without being named on the property.
Their income boosts your borrowing power — ideal if you’re struggling to buy solo, but still want to keep full ownership of the home.
Speak to a mortgage expert today for the best deal.
How Strive Can Help
At Strive, we’ve built a reputation for helping buyers secure high LTV mortgages — whether through standard 95% deals, government schemes, or creative alternatives.
We know which lenders stretch affordability, who’s flexible on property type, and how to position your application for approval the first time around.
So whether you’ve saved 5% or even less, our team can help you turn it into a mortgage offer that works.
If you’re ready to explore your 5% deposit options, start here:
5% Deposit Mortgages Guide – Strive
Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
