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Mortgages With Low Deposit

Looking for a mortgage with a low deposit? Submit our simple online form and let Deedle find you the best mortgage rates in your area. It is free to apply!

We understand that saving a substantial deposit can be challenging, but that shouldn't hinder your path to homeownership. With our expertise and access to lenders, we can help you secure a mortgage with a low deposit.

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How To Get A Mortgage With Low Deposit

Step 1
Complete The Quick And Easy Online Form
Enter some simple information on our online form including your name, contact information and your low deposit mortgage requirements.
Step 2
Receive A Callback From Our Dedicated Team
After submitting our form, you will quickly hear from a member of the team via phone to talk you through the process of getting your mortgage.
Step 3
We Check You Are Eligible
After reviewing some further information, we will let you know how much you can borrow and find the best rates in your area.
Step 4
You Get The Best Mortgage Offer
Whatever your borrowing requirements are, we’ll give you the best mortgage rate and begin submitting your mortgage application!
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What Is a Low Deposit Mortgage?

A low deposit mortgage allows you to purchase a home with a smaller upfront deposit compared to traditional mortgages.

Instead of needing a large sum of money, you can secure a mortgage with a deposit as low as 5-10%. In some cases, we can find a deal for you even if you are looking for a mortgage with no deposit.

This type of mortgage can be beneficial for first-time buyers or those who may have difficulty saving a large sum of money for a traditional mortgage. However, it’s important to note that a smaller deposit may result in higher interest rates or additional fees. Deedle Finance specialises in helping individuals like you who have a low deposit but still aspire to own their dream home.

Am I Eligible for a Low Deposit Mortgage?

While eligibility criteria may vary among lenders, Deedle Finance will guide you through the general requirements for a low deposit mortgage. Factors that will be considered include:

  • Your credit history – this refers to any debts you might have, the length of any credit accounts you have open and other financial transactions
  • Income stability – this will include information about your current employment and monthly income
  • Your affordability – a mortgage lender will consider the amount you are looking to borrow and your ability to meet repayments against your monthly outgoings

Our team will assess your eligibility and help you understand your chances of obtaining a low deposit mortgage.

low-deposit-mortgage

What Are the Repayment Options for Low Deposit Mortgages?

When it comes to repayment options for low deposit mortgages, you have a couple of choices.

  • Repayment Mortgage: The most common option is a repayment mortgage, where you make regular monthly payments that include both the principal amount borrowed and the accrued interest. This allows you to gradually reduce your mortgage debt over time until it’s fully paid off.
  • Interest-only Mortgage: An interest-only mortgage is where your monthly payments cover only the interest charges. However, it’s important to note that with an interest-only mortgage, you’ll need a separate plan to repay the principal amount at the end of the mortgage term.

Deedle Finance can guide you in understanding these options and help you choose the most suitable repayment strategy for your low deposit mortgage.

What Different Mortgages Are Available With A Low Deposit?

Fixed-Rate Mortgages

  • The interest rate remains fixed for a predetermined period, typically 2 to 10 years.

  • Even if interest rates rise in the market, your rate remains unchanged.

  • Allows you to plan your finances with confidence, knowing your mortgage payments won’t fluctuate.

Variable-Rate Mortgages

  • The interest rate can change over time, depending on fluctuations in the market.

  • If interest rates decrease, your mortgage rate and monthly payments may decrease as well.

  • Some variable rate mortgages allow you to make additional payments, helping you to pay off your mortgage faster.

Tracker
Mortgages

  • The interest rate on a tracker mortgage is directly linked to a specific external rate, typically the Bank of England’s base rate.

  • If the external rate decreases, your mortgage rate and monthly payments may also decrease, resulting in potential savings.

  • If the external rate increases, your mortgage rate and monthly payments may rise accordingly, so consider the impact on your ability to meet repayments.

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Why Should I Use Deedle Finance to Find My Low Deposit Mortgage?

Choosing Deedle Finance to find your mortgage with a low deposit offers numerous advantages. We specialise in helping individuals secure competitive mortgage rates, even for first-time buyers or those with limited upfront funds.

So if you are looking for a 5 deposit mortgage, 10 mortgage deposit, less or more, our experienced advisors have extensive knowledge of the market and access to a wide network of lenders who offer lots of options. We understand the complexities of low deposit mortgages and can guide you through the process, ensuring you make informed decisions.

Deedle saves you time and effort by searching multiple lenders, comparing terms and finding the best deals tailored to your needs. Trust us to make your journey smooth and successful.

Where Can I Get A Low Deposit Mortgage?

Low deposit mortgages are available across the UK. Areas include:

  • Aberdeen
  • Bath
  • Belfast
  • Birmingham
  • Bristol
  • Cambridge
  • Cardiff
  • Coventry
  • Durham
  • Edinburgh
  • Glasgow
  • Leeds
  • Liverpool
  • Leicester
  • London
  • Manchester
  • Newcastle
  • Nottingham
  • Oxford
  • Portsmouth
  • Sheffield
  • Southhampton
  • Warwick
  • York

How Do I Repay My Low Deposit Mortgage?

Repayment Mortgage:

The most common method for your mortgage with a low deposit is a repayment mortgage, where your monthly payments cover both the interest and a portion of the amount you borrowed. This means that with each payment, you are gradually reducing the outstanding balance of your mortgage.

The repayment amount is calculated based on several factors, including the loan amount, interest rate and mortgage term. You can typically choose the term, such as 25 or 30 years, based on your financial goals and affordability. Longer terms result in lower monthly payments but may result in paying more interest over the life of the mortgage.

Interest-Only Mortgage:

Some borrowers may choose an interest-only mortgage offer, although these are less common for low deposit mortgages.

With an interest-only mortgage, your monthly payments only cover the interest charges, and the principal balance remains unchanged. This option can result in lower monthly payments but requires a separate plan to repay the borrowed amount at the end of the mortgage term, such as the sale of the property.

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How Do I Choose The Right Low Deposit Mortgage Deal?

Choosing the right low deposit mortgage involves considering several factors. Start by assessing your financial situation, including

  • your income
  • monthly expenses
  • your credit score

Determine your preferred mortgage type, such as fixed-rate or variable rate, based on your risk tolerance and long-term goals.

Seeking advice from Deedle Finance can also provide valuable insights and assistance in selecting the best low deposit mortgage that suits your needs. We will compare interest rates, loan terms and fees from different lenders to find the most favourable terms.

Are There Government Schemes For Mortgages With A Low Deposit?

Yes, there are governments schemes to support individuals with low deposits. This assistance can make purchasing a property more affordable and accessible. Key government initiatives include:

    1. Help to Buy Loan: Borrow a portion of the property value (up to 20% in England) as an interest-free loan, reducing the required deposit.
    2. Shared Ownership: Purchase a share (25% to 75%) of a property from a housing association, paying rent on the remaining share.
    3. First Home Loan Deposit Scheme: Government-backed guarantee on a portion of the mortgage, allowing first-time buyers to secure a mortgage with a low deposit.
    4. Right to Buy: Enables eligible tenants to purchase their rented home at a discounted price, potentially requiring a lower deposit.
    5. Lifetime ISA: Save towards a deposit and receive a government bonus of 25% on contributions (up to a limit) for first-time buyers.

Frequently Asked Questions About Mortgages With Low Deposit

Can I Get A Mortgage With A Low Deposit?

Yes, you can. There are mortgage options available that allow you to secure a home loan with a low deposit, typically starting from as little as 5% of the property’s value.

How Can I Save For A Low Deposit?

Saving for a low deposit can be achieved through disciplined budgeting, reducing expenses and setting aside a portion of your income regularly. Consider government schemes like Help to Buy or Lifetime ISA, which provide incentives for saving towards a deposit.

What Are The Advantages Of A Low Deposit Mortgage?

Low deposit mortgages can help you get onto the property ladder sooner, enabling homeownership with a smaller upfront deposit. They offer the opportunity to build equity, benefit from potential property value appreciation and start enjoying the perks of owning a home.

Are There Any Additional Costs Associated With A Low Deposit Mortgage?

There may be additional costs, such as mortgage insurance for borrowers with a deposit less than 20%. Other costs include valuation fees, legal fees and stamp duty (if applicable).

It’s important to consider these expenses when budgeting for your low deposit mortgage.

How Long Does It Take To Process A Mortgage With A Low Deposit Application?

The processing time can vary depending on several factors, including the lender, the complexity of the application and the supporting documentation provided. On average, it can take anywhere from a few weeks to a couple of months. Working with Deedle can help to speed up the process.

Deedle Finance is the trading name of Tudor Lodge Digital Ltd which trades under company number: 10437769.

Deedle Finance does not provide advice on regulated mortgage contracts or credit agreements, these are carried out by one of our independent FCA regulated associates. 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENT ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

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