I'm a would-be first-time buyer but struggling to save a big enough deposit. 

I don't earn a huge salary and my parents are not wealthy, so there's no 'Bank of Mum and Dad' to fall back on. 

I've read about 95 per cent and even 100 per cent mortgages being available. Is this something I should consider? What are the pros and cons involved? 

And what, if any, other options do I have? I don't like the idea of borrowing so much, but my rent is always going up and I just want to be in a place of my own.

Jane Denton, of This is Money, replies: In some cases, 95 per cent, 100 per cent or other high loan-to-value mortgages can be a valuable tool to help first-time buyers get on the property ladder faster. 

Loan-to-value relates to the percentage of the property’s value that is covered by the mortgage, so if you had a 5 per cent deposit of £10,000 on a £200,000 home, your loan-to-value would be 95 per cent. 

The average first-time buyer deposit in 2024 was £61,090, according to Halifax, and buyers put down 20 per cent on average. 

However, the number of lenders offering mortgages with deposits of 5 per cent is growing, so those who can't save as much should find they have plenty of options. 

No-deposit or 100 per cent mortgages have been rare in recent years, but there are a few examples. They often have special conditions, such as a parent being used as a guarantor. 

Mortgages with low deposits also come with a higher interest rate, so monthly payments will be more expensive. 

Getting a mortgage broker involved to help you would be a good idea. They could help you decide how many years to take your mortgage for, known as the term (often between 25 and 35 years) and calculate how much it would cost you in total over its duration. 

Also factor in that there could be a greater risk of negative equity if you got a 95 per cent or 100 per cent mortgage. 

Negative equity happens when house prices fall and a property becomes worth less than the amount borrowed to buy it. In the longer-term, this can make it more difficult to remortgage or sell. 

You will also still need a good credit history. Do note that some lenders exclude new-builds from low deposit mortgages. 

Some first-time buyers opt to purchase a shared ownership property to get on the property ladder. This gives buyers the chance to own a proportion of a property and pay rent on the rest. 

When buying through shared ownership you would still have to put down a deposit for the share that you own, as you would any other property purchase. Buying a shared ownership property should not be taken lightly as there are potential pitfalls involved. 

We spoke to two experts to get their advice on your property deposit dilemma.  

Malcolm Davidson, managing director of mortgage broker, UK Moneyman, says: For many first-time buyers, the so-called 'Bank of Mum and Dad' has become the difference between owning a home and renting indefinitely. 

In fact, recent estimates suggest family members now contribute more than £9billion a year towards house deposits, which is an amount that would put it just outside the UK’s top ten mortgage lenders if it were a bank in its own right.

Against a backdrop of rising rents and living costs, it is no surprise that buyers without family help are increasingly looking at high loan-to-value mortgages, including 95 per cent and even 100 per cent deals.

The good news is that 95 per cent mortgages are now widely available. 

If you have a stable income, a clean credit history and can demonstrate sensible money management, a 5 per cent deposit is often enough to get on the ladder. 

The obvious advantage is that you need far less cash upfront. 

The trade-off is cost, because interest rates are higher than on lower-deposit deals and you are more exposed if house prices fall as you will start with very little equity.

Genuine 100 per cent mortgages are far rarer, but they do exist. 

One lender has launched a 100 per cent mortgage which is fixed for ten years, giving buyers payment certainty but tying them in for a long period. 

Other lenders offer alternatives too, such as requiring a smaller fixed cash contribution, say £5,000 regardless of the purchase price, or lending at 100 per cent if you can prove you have paid rent at an equivalent level for at least 12 months.

Another option involves family support without gifting cash. 

Some lenders allow parents or relatives who own their own home to offer it as additional security. This reduces the lender’s risk, but it does mean the supporter’s property would be at risk if payments are not maintained.

However, it is important to be realistic. House prices have risen far faster than wages for decades and affordability rules tightened significantly after 2014. 

For lower earners buying alone, the challenge is often not the deposit but how much a lender is willing to lend them based on income.

If a mortgage is not quite within reach yet, alternatives include shared ownership or buying in a cheaper area to build equity over time. Shared ownership has its own potential pitfalls. 

High-deposit or no-deposit mortgages can be a route onto the ladder, but they should be approached carefully, with a clear understanding of the risks involved. 

Rachel Geddes, strategic lender relationship director at mortgage broker Mortgage Advice Bureau, says: Over the last year, we have seen a significant resurgence in 95 per cent and 100 per cent mortgages. 

It is encouraging to see lenders acknowledging that the 'Bank of Mum and Dad' is not a reality for everyone. 

For many, the lack of a substantial deposit is the sole barrier to homeownership, and lenders are responding with 95 per cent, 98 per cent, and 100 per cent loan-to-value options.

The main advantage of these products is their accessibility. They allow prospective buyers to break the cycle of the rental market and begin building equity in a home of their own. 

However, there are considerations to take into account. Generally, the smaller your deposit, the higher the interest rate you will be charged. 

There is also the potential risk of negative equity if house prices dip. That said, for many, the cost of a slightly higher interest rate is still preferable to the long-term expense of being unable to get on the property ladder at all.

If you do not have family wealth to lean on, there are other alternative solutions to consider. 

Joint ownership, namely buying with a friend, partner, or a family member, can be a game-changer. 

By combining your incomes, you may find your affordability increases, and pooling even small individual savings can result in a more competitive deposit. 

These products are not only designed for first-time buyers, but also home movers who either lack equity in their current property, or those whose recent change of circumstances require them to start from scratch, such as a divorce.  

In your case, with a lower income, the hurdle faced will just be the lack of deposit, but overall affordability in terms of income and borrowing power. 

This is why expert mortgage advice is essential. With the support of an adviser, you can find a solution that fits with both your budget and financial goals.