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mortgage broker damian youell



See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of NeedingAdvice.co.uk Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started NeedingAdvice.co.uk as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.

Buying a home is a dream for many people, but it can be difficult to save up for a large down payment. Thankfully, mortgage options are available that require only a small deposit and allow you to finance the rest of the purchase price. Getting a mortgage with a low deposit amount is always a challenging aspect of buying property, but it is possible with the right advice and guidance.

In this article, we will cover the different types of residential and buy-to-let mortgages available with a low deposit amount, discuss their benefits and drawbacks, and provide tips for finding the best deal. We will also discuss what to look for in a lender and how to make sure your credit score is up to snuff before you apply.

Post Topics

What is a Low-Deposit Mortgage?

Who Can Benefit from Low-Deposit Mortgages?

Is there any government scheme to help get a mortgage with a low deposit?

Advantages of Low-Deposit Mortgages

Disadvantages of low-deposit mortgages

Eligibility for Low Deposit Mortgages

Finding the Right Lender

Saving for a Low Deposit Mortgage

Applying for a Low Deposit Mortgage

Next Steps


Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us

This information is correct as off 13/11/2023 and refers to products and customers based in the UK

What is a Low-Deposit Mortgage?

A low-deposit mortgage refers to a type of home loan where the borrower is required to provide a smaller deposit or down payment compared to traditional mortgages. Typically, a low-deposit mortgage requires a deposit of around 5% to 10% of the property’s value, whereas traditional mortgages often require a deposit of 20% or more.

This type of mortgage is popular among first-time homebuyers or those with limited savings, as it allows them to enter the housing market with a smaller upfront cost. However, it’s important to note that low-deposit mortgages may come with certain drawbacks, such as higher interest rates or additional fees, so it’s essential to carefully consider the terms and conditions before committing to this type of mortgage.

Who Can Benefit from Low-Deposit Mortgages?

Low-deposit mortgages are a great option for anyone who is looking to purchase a home but doesn’t have the funds for a large deposit. First-time buyers and those trying to get on the property ladder can benefit from these types of mortgages as they allow them to purchase a home with a smaller upfront cost. Additionally, there are government-backed schemes available that can help individuals qualify for a mortgage without a deposit.

Is there any government scheme to help get a mortgage with a low deposit?

One of the UK government schemes that can help individuals get a mortgage with a low deposit is the Help to Buy Equity Loan scheme. This scheme is designed to assist first-time buyers and existing homeowners who wish to purchase a new-build property.

Under the Help to Buy Equity Loan scheme, the government provides an equity loan of up to 20% (or 40% in London) of the property’s value, which can be used as part of the deposit for a mortgage. This reduces the amount of money needed for a deposit, enabling buyers to secure a mortgage with a smaller upfront payment.

To be eligible for the Help to Buy Equity Loan scheme, there are a few criteria to meet. The property being purchased must be a new-build home, and the purchase price must not exceed the set limits for the specific region. Additionally, the scheme is only available to buyers who do not own any other property and who can demonstrate affordability to repay the mortgage.

It is important to note that the Help to Buy Equity Loan is not the only government scheme available for those looking to get a mortgage with a low deposit. Other schemes include Shared Ownership and the Help to Buy ISA or Lifetime ISA, which offers assistance to buyers in different ways.

Overall, the Help to Buy Equity Loan scheme can be a valuable resource for individuals looking to purchase a property without a large deposit. It provides financial support and makes homeownership more accessible to those who may not have been able to save a substantial deposit on their own.

Advantages of Low-Deposit Mortgages

As a mortgage broker, I often advise my clients on the advantages of low-deposit mortgages. These mortgages can be a great way for first-time buyers or those with limited savings to get onto the property ladder.

Lower Initial Costs

The main advantage of a low-deposit mortgage is that it requires a smaller upfront payment than a traditional mortgage. This can be a huge help for buyers who are struggling to save for a large deposit.

For example, a traditional mortgage may require a 20% deposit, while a low-deposit mortgage may only require a 5% deposit. This means that buyers can purchase a property with a much smaller upfront investment.

Easier to Qualify for a Loan

Another advantage of low-deposit mortgages is that they can be easier to qualify for than traditional mortgages. This is because lenders are more willing to lend to borrowers who have a smaller deposit, as they are less likely to default on their loans.

However, it is important to note that lenders will still have criteria that borrowers must meet in order to qualify for a low-deposit mortgage. This criteria may include having a good credit score and a regular income.

If you are unsure whether you qualify for a low-deposit mortgage, it is always best to speak to a mortgage adviser. They can help you assess your financial situation and find the best mortgage for your needs.

More Flexibility with Repayments

Low-deposit mortgages typically offer more flexibility with repayments than traditional mortgages. This is because lenders are more likely to offer repayment options such as interest-only mortgages.

Interest-only mortgages only require borrowers to repay the interest on the loan each month. This can make it easier for borrowers to afford their monthly repayments, but it is important to note that the principal balance of the loan will not be reduced until the end of the mortgage term.

Tax Benefits and Possibilities for Equity Growth

Homeowners in the UK can benefit from a number of tax benefits, such as mortgage interest relief. This means that homeowners can deduct the interest they pay on their mortgage from their taxable income.

Low-deposit mortgages can also offer the potential for equity growth. Equity is the difference between the value of your property and the amount you owe on your mortgage. As property values increase over time, so too will your equity.

 What are the disadvantages of low-deposit mortgages?

Low-deposit mortgages can be a great way to get onto the property ladder in the UK, but it is important to be aware of the potential drawbacks before applying. Some of the key disadvantages of low-deposit mortgages in the UK include:

  • Higher interest rates and fees: Lenders charge higher interest rates on low-deposit mortgages to compensate for the increased risk of lending to a borrower with a smaller deposit. Additionally, low-deposit mortgages in the UK may also be subject to additional fees, such as a higher lending charge (HLC).
  • Higher risk of negative equity or defaulting on loan payments: Because borrowers with low-deposit mortgages have less equity in their property, they are at greater risk of negative equity if property values decline in the UK. This can make it difficult to move or switch mortgages. Additionally, borrowers with low-deposit mortgages may also be more likely to default on their loan payments, especially if they experience financial difficulties.
  • Need to have good credit history and steady employment record: Lenders typically require borrowers with low-deposit mortgages in the UK to have a good credit history and steady employment record. This is because lenders need to be confident that the borrower will be able to afford their monthly repayments. If you have a poor credit history or unstable employment, you may find it difficult to qualify for a low-deposit mortgage in the UK or may be offered less favourable rates and terms.
  • Less room for negotiation with lenders: Due to the higher risk associated with low-deposit mortgages, lenders in the UK may be less willing to negotiate on interest rates and terms. This is because lenders need to protect their own financial interests.

It is important to weigh the pros and cons of low-deposit mortgages in the UK carefully before deciding if they are right for you. If you are considering a low-deposit mortgage in the UK, it is important to speak to a mortgage adviser to get personalised advice and find the best mortgage for your needs.

Eligibility for Low Deposit Mortgages

What are the requirements for a low-deposit mortgage?

To be eligible for a low-deposit mortgage, you’ll need to meet certain requirements. These requirements may include having a good credit score, having a stable income, and being able to afford monthly repayments.

How can you improve your chances of being approved?

To improve your chances of being approved for a low deposit mortgage, you can take steps to improve your credit score, such as paying off any debts and ensuring you’re registered on the electoral roll. You can also consider applying with a co-borrower or guarantor, which can increase your chances of being approved.

What are the common reasons for rejection?

Common reasons for rejection include having a poor credit score, not being able to afford the monthly repayments, and not meeting the lender’s eligibility requirements.

Finding the Right Lender

What factors should you consider when choosing a lender?

When choosing a lender, you should consider factors such as the interest rate, the fees and charges, and the lender’s reputation. You should also consider whether the lender offers any incentives, such as cashback or free valuations.

How can you compare different lenders?

You can compare different lenders by using comparison websites or by speaking to a mortgage broker. A mortgage broker can help you find the best deal for your needs and can also help you with the application process.

What are the best lenders for low deposit mortgages?

Some of the best lenders for low deposit mortgages include Barclays, Halifax, and Nationwide. However, it’s important to shop around and compare different lenders to find the best deal for your needs.

Saving for a Low Deposit Mortgage

How much do you need to save for a low deposit mortgage?

The amount you need to save will depend on the property’s value and the lender’s requirements. However, you can typically get a low deposit mortgage with a deposit of 5% to 10% of the property’s value.

What are some tips for saving money?

Some tips for saving money include setting a budget, cutting back on unnecessary expenses, and considering ways to increase your income, such as taking on a part-time job or applying for a student loan.

How long does it take to save for a low deposit mortgage?

The amount of time it takes to save for a low deposit mortgage will depend on your income and expenses. However, it’s important to start saving as early as possible to give yourself enough time to save up.

Applying for a Low Deposit Mortgage

What documents do you need to apply for a low deposit mortgage?

To apply for a low-deposit mortgage, you’ll typically need to provide documents such as proof of income, bank statements, and ID.

What is the application process like?

The application process typically involves filling out an application form and providing the required documents. You may also need to undergo a credit check and a property valuation.

How long does it take to get approved?

The time it takes to get approved will depend on the lender and the complexity of your application. However, it typically takes around 2 to 4 weeks to get approved.

Next Steps

A low-deposit mortgage can be a great option for first-time buyers and those with low incomes who are looking to get on the property ladder. Following the tips and advice in this guide can improve your chances of securing a low-deposit mortgage and unlocking the door to homeownership. Remember to shop around, compare different lenders, and save as early as possible. We would suggest you contact our team of expert mortgage brokers who can help you with your mortgage application.

Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us