The deposit is usually the biggest hurdle for first-time buyers. But the minimum required is often smaller than people assume — and there are several routes onto the ladder for buyers with very little saved, or with family willing to help.
This is a full breakdown of every small deposit option currently available, including the ones most people haven't heard of.
The standard route: 5% deposit
The minimum deposit for a standard residential mortgage is 5% of the purchase price. So on a £250,000 property, that's £12,500. On a £300,000 property, it's £15,000.
95% LTV mortgages (where you borrow 95% and put down 5%) are widely available from high street lenders. The trade-off is that rates at 95% LTV are higher than at 90% or 85% — so your monthly payment will be a bit more than someone with a larger deposit buying the same property.
The £5,000 minimum rule
Some lenders apply a minimum deposit in cash terms, regardless of the percentage. A common threshold is £5,000. This matters mainly for lower-priced properties: on a £90,000 home, 5% is just £4,500 — which would fall below the minimum for some lenders. On anything priced above £100,000, a 5% deposit will clear the £5,000 threshold comfortably.
If you're buying at a lower price point (more common outside London and in parts of Essex), it's worth checking lender minimums early.
A 5% deposit gets you on the ladder, but even a small step up to 10% opens more lenders and better rates. If you're close to 10%, it's worth doing the maths on whether waiting a few more months to save the extra is worth it in terms of the rate difference over your fixed term.
Family Springboard: buying with no deposit
Barclays Family Springboard (and similar)
The Family Springboard allows a first-time buyer to purchase with no deposit at all, as long as a family member puts 10% of the purchase price into a linked Barclays savings account for 5 years.
- The family member's money acts as security for the lender — it isn't given away
- After 5 years (assuming all payments have been made), the family member gets their savings back with interest
- The buyer owns the property throughout and builds equity normally
- The family member must be a close relative (parent, grandparent, sibling, partner)
- The 10% is locked away for 5 years and cannot be accessed early
Best for: buyers with no deposit of their own but a family member willing and able to tie up capital for five years.
Other lenders offer similar products under different names — sometimes called "family assist" or "family boost" mortgages. The mechanics vary slightly (some use a charge on the family member's property rather than a savings account), but the principle is the same: family security reduces the lender's risk enough to offer a 100% mortgage.
Deposit Unlock: 5% deposit on new builds
Deposit Unlock
Deposit Unlock is backed by the Home Builders Federation and allows buyers to purchase a participating new build property with just a 5% deposit on homes up to £833,250.
- Available on new build properties from participating housebuilders
- Works via a mortgage indemnity guarantee funded by the developer
- Accepted by a growing number of lenders, including some high street names
- No government funding involved — backed entirely by the house building industry
- Not every development participates — check with the developer before reserving
Best for: first-time buyers purchasing a new build property who have a 5% deposit saved.
This is particularly relevant for buyers in areas like Chelmsford, where new build developments are widespread. See our new build mortgages page for more on the specific considerations around new build purchases.
Gifted deposit from parents
A gifted deposit — where parents or other close family members give you money toward your deposit — is accepted by most lenders, provided it's a genuine gift and not a loan.
The lender will require a gifted deposit letter signed by the donor confirming:
- The amount gifted
- That it's a gift and not a loan (no expectation of repayment)
- The donor's relationship to the buyer
- That the donor has no interest in the property
The lender may also ask for evidence of the source of the funds (e.g. bank statements). Some lenders accept the full deposit as gifted; others require the buyer to have contributed at least a small amount themselves.
Mortgage Guarantee Scheme
The government's Mortgage Guarantee Scheme allows lenders to offer 95% mortgages by providing a government-backed guarantee on the portion of the loan above 80% LTV. This reduces the risk to the lender and has resulted in a wider range of 95% products being available on the high street.
Unlike Help to Buy (which ended in March 2023), this scheme doesn't change the amount you can borrow or require any government loan. It simply enables lenders to offer 95% mortgages at more competitive rates than they might otherwise. For buyers, it's largely invisible — you just benefit from having more lenders willing to lend at 95%.
At a glance: which option suits you?
| Option | Deposit required | Requirement | Best for |
|---|---|---|---|
| Standard 95% mortgage | 5% (min ~£5k) | Your own savings | Buyers with 5% saved |
| Family Springboard | 0% | Family member puts 10% in savings for 5 years | Buyers with no deposit but supportive family |
| Gifted deposit | As low as 5% | Family gift + gifted deposit letter | Buyers whose family can gift funds outright |
| Deposit Unlock | 5% | Participating new build development | Buyers purchasing a new build property |
| Mortgage Guarantee Scheme | 5% | Standard application — no extra requirements | All 5% deposit buyers (broadens lender choice) |
We'll go through your situation and help you find the most suitable route. Call us on 01277 564 054 or send a message.
Talk to an AdviserFAQs
The minimum deposit for a standard residential mortgage is 5% of the purchase price. Some lenders apply a minimum cash requirement of £5,000 regardless of the percentage. On properties above £100,000, a 5% deposit will clear this threshold.
On a property priced at £100,000 or less, yes — a £5,000 deposit represents 5% and is accepted by most 95% LTV lenders. On more expensive properties, £5,000 won't cover 5% and may also fall below some lenders' minimum cash requirements. Family Springboard mortgages can help where savings are very limited.
The Family Springboard allows a first-time buyer to purchase with no deposit at all, provided a family member puts 10% of the purchase price into a linked Barclays savings account for 5 years. After 5 years the family member gets their money back with interest. The buyer owns the property throughout.
Deposit Unlock lets eligible buyers purchase a new build home with a 5% deposit on properties up to £833,250. It's backed by participating housebuilders via a mortgage indemnity guarantee. Not every development participates, so confirm with the developer early.
Yes. Most lenders accept a gifted deposit from immediate family. The gift must be genuine (not a loan) and the donor will need to sign a gifted deposit letter. The lender may also ask for evidence of the source of funds.