Low deposit mortgages for first-time buyers in Scotland
You don't need to save 10%, or even 5%, to buy your first home. Some lenders now accept a 3% or 2% deposit, or a flat £5,000, and some mortgages need no deposit at all if you can show a good record of paying rent. Scottish Government schemes can cut what you need even further. I'll help you find the route that gets you in soonest without stretching you too far.
How much deposit do you need?
| Home price | 0% | 2% | 3% | £5,000 | 5% |
|---|---|---|---|---|---|
| £120,000 | £0 | £2,400 | £3,600 | £5,000 (4.2%) | £6,000 |
| £150,000 | £0 | £3,000 | £4,500 | £5,000 (3.3%) | £7,500 |
| £180,000 | £0 | £3,600 | £5,400 | £5,000 (2.8%) | £9,000 |
| £220,000 | £0 | £4,400 | £6,600 | £5,000 (2.3%) | £11,000 |
The smaller your deposit, the fewer lenders you can choose from and the higher the rate usually is. Each option below has its own rules, and they suit different people.
Mortgages with less than a 5% deposit
0% deposit: 100% mortgages based on your rent
If you've been paying rent on time, you may be able to borrow the full price with no deposit. In Scotland, that means up to 100% of the purchase price or the Home Report valuation, whichever is lower.
- You'll usually need 12 months of rent paid on time in a row, within the last 18 months, shown on your bank statements or confirmed by a registered letting agent.
- Your other credit, such as cards and loans, needs to have been paid on time for at least the last six months.
- You don't have to be a first-time buyer. If you haven't owned a home in the UK in the last three years, you may qualify too.
- The rate is fixed for five years, and new-build flats aren't accepted.
2% deposit: 98% mortgages
A small number of lenders will now lend up to 98% of the price, so you only need a 2% deposit.
- Some 98% deals are only for employed applicants.
- Some ask for 2% of the price or £5,000, whichever is higher, and the deposit must come from your own savings rather than a gift.
- New-build homes are often excluded, and the rate is usually fixed for five years.
3% deposit: 97% mortgages
97% mortgages need a 3% deposit. Some come from specialist lenders that only work through mortgage advisers, and they can suit people the high street turns down.
- Self-employed people, contractors and people with a second job can be considered.
- Some past credit problems can be considered, as long as they're not recent.
- Terms can run up to 45 years. That keeps monthly payments down, but you pay more interest overall.
- Rates are higher than on 95% mortgages, and the rate is usually fixed for five years.
£5,000 deposit mortgages
Several lenders offer mortgages where the minimum deposit is a flat £5,000 rather than a percentage of the price. The more the home costs, the smaller that is as a share: on a £220,000 home it's about 2.3%.
- They're for first-time buyers, and the rate is usually fixed for five years.
- Prices typically start at around £100,000, with an upper limit of £300,000 to £500,000 depending on the lender.
- New-build homes are generally excluded.
- Some insist the £5,000 comes from your own savings, while others accept a gift from family.
- Some can't be used with shared equity or shared ownership schemes such as LIFT or the First Homes Fund.
Other ways to buy with a smaller deposit
95% mortgages
Mainstream lenders offer mortgages at 95% of the price, so you put in 5%. This is the most widely available low deposit option, so you'll usually have more lenders to choose from and better rates than with a smaller deposit.
The First Homes Fund
The Scottish Government's First Homes Fund contributes up to £10,000 towards a home costing up to £300,000. It's a shared equity contribution, not a gift. The mortgage must be on a repayment basis and cover at least 25% of the price, and lenders usually expect a deposit of around 5%. It can't be combined with LIFT.
The LIFT scheme
If you're on a low to moderate income, LIFT can pay 10% to 40% of the price, which shrinks the mortgage you need.
A gifted deposit from family
Most lenders accept a deposit gifted by a close family member. The person giving it signs a letter confirming it's a gift that doesn't need to be repaid, and your solicitor checks where the money came from.
Family support mortgages
Some lenders let a family member join the mortgage to boost affordability without being on the title deeds, or use family savings as security instead of a deposit. These need careful advice, because they put the family member's money or income on the line too.
Lifetime ISA and Help to Buy ISA
You can put savings from a Lifetime ISA or Help to Buy ISA towards your deposit, including alongside the First Homes Fund.
Is a smaller deposit right for you?
- You start with little or no equity. If house prices fall, you could owe more than your home is worth, which makes moving or remortgaging harder.
- Rates are usually higher, so your monthly payments will be higher than with a bigger deposit.
- Most of these deals are fixed for five years and usually have early repayment charges if you leave the deal early.
- Saving for a few more months can sometimes save you more than it costs in rent. I'll show you both sides before you decide.
Costs to budget for besides the deposit
Even with a 0% deposit mortgage, you'll need money for these:
- LBTT: first-time buyers pay no Land and Buildings Transaction Tax on the first £175,000 of the price. That relief is worth up to £600 compared with other buyers.
- Solicitor's fees and outlays for the conveyancing
- A lender's valuation fee, if your mortgage product charges one. In Scotland the seller pays for the Home Report.
- My mortgage advice fee of £300, confirmed before you go ahead
- Moving costs, and protection cover such as life insurance
What lenders look at when your deposit is small
- Your credit history. Recent missed payments or defaults matter more the smaller your deposit. See my bad credit mortgages page.
- Affordability: your income, regular commitments and household costs
- The property. Some lenders want a bigger deposit for new-build flats or certain types of construction.
- Where your deposit comes from: savings, a gift, a Lifetime ISA, or a scheme
How I help
- I compare lenders across the market, including specialist lenders that only work through mortgage advisers.
- I check which low deposit options you're likely to qualify for before anything is submitted.
- I check whether the First Homes Fund or LIFT would get you a better result.
- I help you plan the deposit, including gifted deposits and ISAs.
- If you're not ready yet, I build you a plan with a realistic timeline.
Low deposit mortgage FAQs
Yes. Many lenders offer 95% mortgages to first-time buyers, subject to credit history, affordability and the property. I can check which lenders are realistic for you before you apply.
Yes, in some cases. Some 100% mortgages use your rent history instead of a deposit. You'll usually need 12 months of on-time rent payments and an up-to-date credit history. You'll still need money for legal fees and moving costs.
Yes. Some lenders go up to 98% or 97% of the price. The rules vary a lot between lenders, so it's worth getting advice before you apply.
It's a mortgage for first-time buyers where the minimum deposit is £5,000 rather than a percentage of the price. They usually have a five-year fixed rate and exclude new-build homes.
No. The Scottish Government doesn't allow the First Homes Fund to be combined with LIFT, so it's one or the other. I can show you which works better for your situation.
Usually, yes. Most lenders accept a gifted deposit from close family, with a signed gift letter confirming it doesn't need to be repaid. Some low deposit deals insist the deposit comes from your own savings, so it's worth checking before you choose.
Only on the part of the price above £175,000. First-time buyer relief raises the zero-rate band from £145,000 to £175,000, saving up to £600.
Lenders often lend around 4 to 4.5 times income, but it depends on your outgoings, credit history and the lender. Try my calculator for a rough idea, then I'll check it properly.
Buying with a small deposit? See what might be possible
Tell me a bit about your situation and I'll come back to you within 24 hours, usually the same day, with an honest view of what you could buy and the best route to get there. It won't affect your credit score.
Are you buying on your own or with someone?
This page is general information, not personal advice. Lender criteria and products change often. Details were checked in October 2026.