Low-deposit mortgage options

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If saving a large deposit feels out of reach, don’t worry, several low-deposit options exist for first-time buyers in Scotland.

Loan-to-Value (LTV) Mortgages

These mortgages allow you to borrow up to 95% of the property’s value, meaning you lower deposit. Many major lenders offer them to first-time buyers.

Guarantor Mortgages

  • A parent or close family member guarantees the loan or provides security, such as savings or equity in their home.
  • Allows you to access better rates even with a small deposit.

Family Deposit Mortgages

  • Use a relative’s savings as security for a mortgage.
  • After a set number of years with on-time payments, the savings are returned.

Government support

Schemes such as Shared Equity or Help to Buy (Scotland) help reduce the deposit burden.

Risks to consider

  • Higher Monthly Payments: Smaller deposits mean borrowing more, resulting in higher repayments.
  • Negative Equity Risk: If house prices fall, you may owe more than the home is worth.
  • Stricter Lending Criteria: Lenders assess income, credit history, and affordability more rigorously.

How to qualify

  • Maintain a strong credit score
  • Demonstrate stable income and low debt
  • Provide proof of deposit source (savings, gift, or scheme)

The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.