It’s possible to get a mortgage with a small deposit, but it will depend on your individual circumstance and what your Loan to Value ratio (LTV) is.
LTV tells you what percentage of your mortgage is a loan, compared to how much the property you’re buying is worth. For instance, if you have a 10% deposit, then you’ll need a 90% LTV mortgage. If you have a 15% deposit, then you’ll need an 85% LTV mortgage and so on.
Your LTV directly impacts which mortgage rates you’ll get. Generally, the higher your LTV then the higher your interest rate will be. This is because there’s more of a risk to lenders when you borrow a lot of money. They’re investing in your property, and there’s a risk that your home could decrease in value, making for a bad investment.
Getting a mortgage with a small deposit is definitely possible, but you’ll have fewer options than if you had a bigger deposit. If you need a mortgage but don’t have a lot of money to put down upfront, it’s a good idea to work with a specialist mortgage broker.
There's also a few government-backed schemes specifically for people with a small deposit, such as Help to Buy and Shared Ownership. Read more about these schemes.