Posted Date: 27/10/2025
For many buyers, saving for a deposit is one of the biggest challenges in the mortgage process. If your deposit is too small, it can sometimes lead to a declined application.
Why a Low Deposit Can Be an Issue
Lenders look at something called the loan-to-value ratio (LTV), which compares the mortgage amount to the value of the property. A smaller deposit means a higher LTV, which can make you appear higher risk to some lenders. As a result, your application may be declined. The usual starting point for deposits is 5% despite the myth of needing a 10%.
Moving Forward
If you’ve been declined due to your deposit size, it doesn’t mean the end of your homebuying journey. Taking time to grow your deposit, even by a small amount, can open more options and improve approval chances.At Muuvin Mortgages & Protection, we offer no-obligation calls to help you understand why you may have been declined and what steps you could take next. You can also view more details about deposit requirements on our dedicated page: https://muuvin.co.uk/when-brokers-say-no/
Can I still get a mortgage with a small deposit?
Yes, but your options may be limited, and you might face higher rates.
Does a bigger deposit always mean a better deal?
Generally, yes. A higher deposit gives lenders more confidence and can unlock more products.
Can family help with a deposit?
Yes, in some cases family assistance may be accepted, depending on lender criteria.
Disclaimer
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is for general information only and should not be taken as advice. Mortgage applications are subject to status and lender criteria. The information provided is correct as of the date it was posted and may be subject to change without notice.
