Buying Your First Home With a Small Deposit
You may only need 5% or 10% to buy your first home.
We help first-time buyers across Northern Ireland understand how much deposit they need, how much they can borrow, and what the monthly payments could look like.
Many people assume they need a large deposit to buy their first home.
In reality, many first-time buyers are able to purchase with deposits from 5% of the property price, depending on the lender and their circumstances.
At First Time Buyer Mortgages, we specialise in helping buyers across Northern Ireland understand what might be possible and how much they may be able to borrow.
Whether you have already started saving or are just beginning to think about buying your first home, understanding how deposits work is a good place to start.
Do you want to find out how much deposit you actually need ?
Call one of our experts or schedule a no obligation Mortgage Deposit Qualification Call.
How Much Deposit Do First Time Buyers Need?
For most first-time buyer mortgages, lenders will usually require a minimum deposit of around 5% of the property's value.
For Example;
Property Price
5% Deposit
10% Deposit
£150,000
£7,500
£15,000
£175,000
£8,750
£17,500
£200,000
£10,000
£20,000
£225,000
£11,250
£22,500
£250,000
£12,500
£25,000
£275,000
£13,750
£27,500
£300,000
£15,000
£30,000
A larger deposit can often give you:
• Access to more lenders
• Lower mortgage interest rates
• Lower monthly payments
HOWEVER, MANY FIRST-TIME BUYERS SUCCESSFULLY PURCHASE WITH DEPOSITS BETWEEN 5% AND 10%.
For Example;
Property Price = £150,000
5% Deposit = £7,500
10% Deposit = £15,000
Property Price = £175,000
5% Deposit = £8,750
10% Deposit = £17,500
Property Price = £200,000
5% Deposit = £10,000
10% Deposit = £20,000
Property Price = £225,000
5% Deposit = £11,750
10% Deposit = £22,500
Property Price = £250,000
5% Deposit = £12,500
10% Deposit = £25,000
Property Price = £275,000
5% Deposit = £13,750
10% Deposit = £27,500
Property Price = £300,000
5% Deposit = £15,000
10% Deposit = £30,000
A larger deposit can often give you:
• Access to more lenders
• Lower mortgage interest rates
• Lower monthly payments
HOWEVER, MANY FIRST-TIME BUYERS SUCCESSFULLY PURCHASE WITH DEPOSITS BETWEEN 5% AND 10%.
Do you want to find out how much deposit you actually need ?
Call one of our experts or schedule a no obligation Mortgage Deposit Qualification Call.
Ways First Time Buyers Buy With Smaller Deposits
There are a number of different ways first-time buyers may be able to purchase with smaller deposits.
5% Deposit Mortgages
Many lenders offer mortgages designed specifically for buyers with 5% deposits.
These are standard residential mortgages where you contribute a small deposit and borrow the remaining balance from a lender.
While the interest rates are usually slightly higher than mortgages with larger deposits, they remain one of the most common ways first-time buyers purchase their first home.
10% Deposit Mortgages
With a 10% deposit, you may benefit from:
• More lender choice
• Lower mortgage rates
• Lower monthly payments
Many buyers aim to reach this deposit level if possible, although it is not always necessary.
Co-Ownership
Co-Ownership is a scheme available in Northern Ireland that allows buyers to purchase a share of a property while paying rent on the remaining share.
This can sometimes allow people to buy with a smaller mortgage and lower upfront costs.
Do you want to discuss 5%, 10% Deposit Mortgages or Co-ownership ?
Call one of our experts or schedule a no obligation Mortgage Deposit Qualification Call.
Family Supported Mortgages
Some lenders offer mortgage products that allow family members to help support a buyer without necessarily gifting the deposit.
These are sometimes referred to as:
• Family assisted mortgages
• Family springboard mortgages
• Family deposit mortgages
Typically, a family member places savings in a linked account with the lender for a number of years. This acts as additional security for the mortgage.
If the mortgage payments are maintained during this time, the savings are usually returned to the family member at the end of the agreed period.
These arrangements can sometimes allow buyers to purchase with a smaller deposit.
Got A Question About Family Backed Mortgages ?
Then Give Us A Call Or Arrange A Time For Us To Call You Below !
Buying a Property Below Market Value
In some cases, family members may want to help a first-time buyer by selling a property below its market value.
This is sometimes known as an under value transaction or concessionary purchase.
For example:
If a property is valued at £200,000 but a family member sells it to you for £180,000, the £20,000 difference may be treated by some lenders as part of the deposit.
This means you may not need to save the full deposit yourself.
However, lenders will normally require:
• An independent property valuation
• Confirmation that the price reduction is a genuine family gift
• Legal documentation confirming the arrangement
Each lender approaches these transactions slightly differently, so it is important to check what options are available.
Got A Question About Buying A Property Under Market Value ?
Then Give Us A Call Or Arrange A Time For Us To Call You Below !
Other Costs To Consider
When buying your first home, it is important to budget for costs beyond the deposit.
These may include:
• Solicitor fees
• Property valuation fees
• Survey costs
• Mortgage arrangement fees (depending on the lender)
• Moving costs
Understanding these costs early in the process can help you plan your budget more accurately.
Got A Question About Buying A Property Under Market Value ?
Then Give Us A Call Or Arrange A Time For Us To Call You Below !
How We Help First Time Buyers
If you would like help understanding your options, you can book a call with one of our advisers.
We will talk through your circumstances and help you understand what may be possible for you.
Want To Know How Close You Are To Buying Your First Home ?
Call Us Or Book In With An Expert & We Will Tell You How Claose You Are ?
Book Your Initial 15 Minute Mortgage Qualification Call
On the call;
We will answer your most important questions
Complete a quick affordability check
Assess if there is any urgent action you need to take
Recommend your best next step
Highlight key resources to get prepared for your first home
15 minute telephone call - totally FREE
