A 1 % deposit mortgage, sometimes called a 99 % LTV mortgage, lets a first-time buyer borrow 99 % of a property’s value while paying only 1 % (or a minimum deposit of £5,000, whichever is higher).
To qualify, you must prove that you are a first-time buyer, demonstrate a solid credit score and clear affordability based on income, debts and everyday expense, aim for a purchase price between £100,001 and £500,000 (houses only, not new-build flats) and commit to living in the home yourself—at least one applicant must move in. If another lender has already rejected you, that “no” is not the end of the road; Montgomery Financial re-packs your case so it lands on the right desk first time.
This specialist loan-to-value product replaces the usual 5–10 % average deposit with just 1 %. The remaining 99 % is financed over your chosen mortgage term, often up to 40 years, at a slightly higher interest rate than 95 % deals. Most providers insist on a five-year fixed rate to protect both you and them from market swings.
To use a 99 % loan-to-value mortgage, you must be a UK first-time buyer and provide at least £5,000 (or 1 % of the purchase price, whichever is higher) as your deposit. The lender will then fund the remaining 99 %. Loan amounts start at £95,001 and rise to £495,000, but the home itself must cost between £100,001 and £500,000.
Only pre-owned houses qualify—new-build properties and all flats are excluded, and the product is not offered in Northern Ireland. The maximum mortgage term is 40 years, and you must be no older than 70 when the term ends.
Rates sit above those on 90–95 % deals and are normally fixed for five years, so be ready for potentially higher repayments after that period. Because this is a capital-and-interest mortgage, every monthly payment chips away at both the balance and the interest, but you should still budget for rate movements in future.
Let’s get you moving
Ready to take your first step onto the property ladder? Our first-time buyer mortgage specialists are here to help you secure the best mortgage for your circumstances. Whether you're just starting to explore your options or you've found your perfect first home, we're here to make the mortgage process as simple as possible.
Montgomery Financial has helped thousands of first time buyers achieve their dream of owning a home. Our commitment to providing exceptional service throughout the whole process has earned us outstanding customer reviews. We understand that buying your first home is one of life's biggest decisions, which is why we guide you throughout every step with expert advice and support.
A 99 % LTV deal can boost your buying power so you escape renting sooner, start building equity even with a tiny deposit, protect you from rapid house prices increases by letting you buy now rather than later, and spread repayments over a longer period to keep monthly repayments manageable.
Because the low deposit mortgage removes the biggest hurdle for first-time buyers, you can keep more cash for moving costs, furnishings and an emergency buffer, ride future housing market growth from day one, and avoid leaning on the Bank of Mum and Dad.
Expect higher interest rates than 90–95 % products, an increased chance of negative equity if prices dip, fewer available mortgage products and therefore stricter eligibility checks, along with potential payment shock when the initial five-year fix ends.
Low-Deposit 95% LTV
Pay 5% upfront and borrow 95%.
5%
First Homes Scheme
Buy selected new builds 30--50% below the property price.
5% of the discounted price
Shared Ownership
Purchase 10--75% of a home and pay rent on the remainder.
From 5% of your share
Lifetime ISA with 25% Bonus
Government boosts your savings by up to £1,000 a year.
5--10%
Instead of tapping family for a lump-sum gifted deposit, you could explore Joint Borrower / Sole Proprietor arrangements where parents’ income supports the loan, Family Deposit Booster products that secure relatives’ savings for a fixed term, or equity-share agreements in which family members invest alongside you and share any gains or losses.
Montgomery Financial’s expert mortgage team focuses on 99 % LTV and other low-deposit solutions. We search the whole market—including niche lenders other brokers overlook—package applications for fast approval, and provide clear, upfront fees along with honest guidance on affordability, repayment strategy and exit costs. When other channels say “computer says no,” we aim for “keys in hand.”
Our comprehensive advice hub provides detailed guidance on all aspects of first-time buyer mortgages. From understanding mortgage terminology to navigating government schemes, our resources help you make informed decisions throughout your home-buying journey.
Regular updates ensure our advice reflects current market conditions and regulatory changes affecting first time buyers. Whether you're just starting to consider homeownership or are ready to make an offer, our advice hub supports you every step of the way.
All people working within Montgomery Financial share those values and beliefs and support the reinforcement of the fair treatment of our customers.
The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK
There may be a fee for mortgage advice, the exact amount will be based on your circumstances and will be confirmed upon initial consultation. A typical fee of £476 is payable on application for residential mortgages and £673 for buy to let mortgages.
Montgomery Financial is a trading style of Montgomery FS Ltd, which is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Montgomery FS Ltd is registered in England and Wales no: 12305679. Registered Address: The Granary 8 Strixton Manor Business Centre, Strixton, Wellingborough, NN29 7PA
Your home may be repossessed if you do not keep up repayments on your mortgage.
