A 5% deposit is a real starting point and there are schemes and family routes that can stretch it further. Here is what exists, what it is for and where the catch is.
Government-backed schemes
- Lifetime ISA: save up to £4,000 a year and the government adds 25%, so up to £1,000 free a year. Only for homes up to £450,000. Open one early: it must be 12 months old before you use it.
- Shared Ownership: buy a share (often 25% to 75%) and pay rent on the rest, with a deposit on your share only. Household income cap £80,000 (£90,000 in London). You can buy more later.
- First Homes (England): new builds sold at a 30% to 50% discount to local first-time buyers, with income caps. Limited supply; ask developers directly.
- Right to Buy / Right to Acquire: if you rent from a council or housing association, you may be able to buy your home at a discount. Check your landlord's scheme.
- Help to Build: an equity loan if you want to build or commission your own home. Niche, but real.
Help to Buy closed in 2023. If a website still advertises it, it is out of date.
Lender products
- 95% mortgages: a 5% deposit with a higher rate. Widely available again.
- Rent-track mortgages: a few lenders offer no-deposit or very low-deposit loans if you can prove 12 months of rent paid on time.
- Deposit Unlock and developer schemes: new-build developers who work with specific lenders so you can buy with 5%. Some also offer rate-reducer deals where they subsidise your rate for a few years.
Which lender does which changes month to month, so our broker checks the live list for you.
Help from family
- Gifted deposit: the most common route. The giver signs a letter confirming it is a gift, not a loan.
- Joint Borrower Sole Proprietor: a parent joins the mortgage to boost affordability but does not own the home, so you keep first-time buyer stamp duty relief.
- Family-assist mortgages: a relative puts savings or their own home up as security instead of handing over cash. They get it back after a few years of clean payments.
Buying together
Buying with a partner, sibling or friend doubles the income and halves the deposit. Get a deed of trust from your conveyancer that says who paid what and what happens if one of you wants out.
Negotiate
A lower price is a smaller deposit. These are the openings that work most often. None of them needs a hard conversation: you are asking a question and the answer is sometimes yes.
- Use the survey. If the survey finds damp, an old boiler or roof work, get a quote for the repair and ask for that amount off the price. Sellers expect this and it is the most common reason a price drops after an offer.
- Homes listed for over eight weeks. Check the listing history on the portals. A home that has sat for two months, or has already cut its price once, has a seller who is ready to talk. Offer below asking and explain why.
- Developer year end. New-build developers have sales targets, often at the end of March, June, September and December. In those weeks ask for flooring, stamp duty paid, a deposit contribution or a straight price cut.
- Your position. A first-time buyer with no chain, an agreement in principle and a conveyancer lined up is a safe bet. Say so, and ask for something in return.
- What the seller needs. A quick completion or a flexible moving date is sometimes worth more to a seller than the last few thousand pounds. Ask the agent what would help.
Talk to our broker
All of these come with rules that change. If any of them sounds like you, connect me with our broker and they will tell you which are open to you today.