YOU NEED A BIG DEPOSIT
For many people, the deposit is the reason they have never even looked into getting a mortgage. With house prices where they are, saving 10% or more can feel like a moving target, especially when rent is taking a large chunk of income each month. The reality is that the mortgage market has changed significantly and several lenders now offer routes onto the property ladder with far smaller deposits than most people expect.
Skipton Building Society’s ‘Track Record Mortgage‘ is one of the most talked about innovations in recent years. It requires no deposit at all. Instead, it uses your history of paying rent on time. If you can show 12 months of consistent rental payments, Skipton will consider lending you the full value of the property. Since launching in 2023, the product had attracted nearly £200 million in applications, with Scotland recording more applications than any other region.
For those who do have some savings, the options are broader still. Accord Mortgages offers a mortgage with a minimum £5,000 deposit, while Newcastle Building Society’s First Step product works on a similar basis, also requiring at least £5,000 saved from your own funds. Lloyds, the UK’s biggest mortgage lender, is also entering this space with a £5,000 deposit mortgage for first-time buyers launching in May 2026, available on properties up to £300,000. Santander has become the first mainstream high street bank to offer a 98% mortgage, meaning a deposit of £10,000 can be enough to get started on a property up to £500,000.
These products all come with their own criteria and are not right for everyone. But they do mean that a conversation with a broker is worth having much earlier than many people think.
STUDENTS CAN’T GET A MORTGAGE
Student status alone is not what puts lenders off. The real factors are income, deposit and credit history and for many students those are the genuine challenges. But that is not the same as saying it is impossible. For some people, it is far more achievable than they would expect.
A small number of lenders offer what is known as a ‘Buy for Uni’ mortgage, designed specifically for students in higher education. These products allow you to buy a property, live in it and rent out the spare rooms to housemates. That rental income can be counted towards affordability, which means in some cases the mortgage can effectively cover itself while you are studying. Bath Building Society is one of the few lenders offering a 100% version of this product, meaning no deposit is required, subject to criteria.
A parent or guardian can also be added as a joint borrower to support affordability without co-owning the property. This arrangement is known as a Joint Borrower Sole Proprietor mortgage, or JBSP. The parent’s income is included in the affordability assessment, but only the student is named on the title deeds. In Scotland, buying a property jointly with someone who already owns a home would typically trigger the Additional Dwelling Supplement, or ADS, which currently sits at 8% of the full purchase price on top of the standard Land and Buildings Transaction Tax (LBTT). On a £200,000 property that adds up to £16,000. Because the supporting borrower holds no legal ownership under a JBSP arrangement, that charge does not apply. It is worth taking advice on individual circumstances, but for many families it represents a significant saving alongside the practical benefit of helping without taking a share of the property.
For students who have already graduated and moved into employment, the picture is often clearer still. Lenders will focus on income and ability to repay, rather than the fact that someone was recently a student. It is also worth knowing that student loans do not appear on your credit file and do not affect your credit score, though lenders may take the repayments into account when calculating how much you can borrow.
Part-time students in full-time employment are generally treated much like any other applicant. In those cases, working income does the heavy lifting and studying alongside a job is rarely a barrier in itself.
The honest answer is that a full-time undergraduate with no income and no family support will find it difficult. But for those with some backing, a plan to generate rental income, or who have recently completed their studies, a conversation with a broker is well worth having. Lenders assess each application individually, and circumstances that seem complicated on paper are often more workable than people assume.
RENTING IS CHEAPER THAN GETTING A MORTGAGE
It’s a common assumption, and in some parts of the country it can be true. Whether renting or buying is cheaper depends on location, interest rates, and deposit size. But in Scotland, the figures often tell a different story.
Research from Lloyds shows that Glasgow currently offers the biggest savings for buyers among major UK cities. Typical mortgage payments there are around 32% lower than average rent, saving buyers roughly £396 a month, or £4,752 a year. With an average first‑time buyer property price of around £172,000, a 5% deposit of approximately £8,600 could be enough to get started.
Monthly costs are only part of the picture. Rent payments build no ownership at all, while mortgage payments steadily reduce what you owe and build equity in a property you own. Lloyds’ analysis suggests that over five years, even with flat house prices, a buyer in Glasgow could build meaningful equity alongside monthly savings compared to renting.
Buying does come with upfront costs, such as legal fees and moving expenses. However, in Scotland sellers provide a Home Report, meaning buyers usually do not need to commission a separate survey themselves. Renting also offers flexibility that buying does not.
Even so, for many people already managing high monthly rents, the gap between renting and owning in Scotland is often much smaller than they assume.
YOU NEED 3 MONTHS OF PAYSLIPS TO APPLY FOR A MORTGAGE
The requirement for three months of payslips has become one of those widely repeated rules that puts people off starting the process. Most high street lenders do use it as a standard requirement, but it is far from universal and for many applicants it is not the barrier they assume. If you do not yet have three months of payslips, an employment contract confirming your salary may be accepted instead. Some lenders will base a decision on a signed contract alone, without requiring any payslips at all, particularly where the applicant has a solid employment history behind them.
For those who have not yet started a new role, the options are broader still. Some lenders will approve a mortgage based on a job offer letter alone, provided the role starts within the next three to six months. The salary and start date will need to be confirmed in writing and the position will generally need to be permanent, but the idea that you must wait until several pay cycles have passed is simply not the case with many lenders.
Probation periods are not necessarily a barrier either. Many lenders are comfortable with applicants still in a probationary period, particularly if the role is permanent and the wider employment history is strong. A recent pay rise can also work in your favour, with many lenders willing to use a new salary figure if the increase has taken effect or is confirmed in writing within the next three months.
Requirements vary considerably between lenders. Some want one to three months of payslips, others will accept a contract or offer letter, and the type of contract matters too, with permanent roles viewed more favourably than fixed-term positions. This is an area where speaking to a broker early makes a real difference. Knowing which lenders are comfortable with your specific situation can save a significant amount of time and avoid applications going to the wrong place.
3 YEARS OF ACCOUNTS FOR SELF-EMPLOYED PEOPLE
This misconception puts a lot of people off making an enquiry at all and it is based on a figure that does not reflect how most of the market actually works. Three years of accounts was once a common requirement, but it is no longer the standard. Two years is the point at which the majority of mainstream banks and building societies will consider an application, whether you are a sole trader or a limited company director. A small number of lenders still ask for three years, but they are in the minority.
More significantly, one year of accounts is sufficient for a growing number of lenders. Specialist lenders in particular will look beyond the accounts themselves, taking into account your professional background and whether your current work is consistent with your previous career. If you moved into self-employment in the same field you had worked in for years, that history carries weight.
How income is assessed also varies depending on your business structure. Sole traders are generally assessed on net profit, while company directors may have salary and dividends considered together. Some specialist lenders can also factor in a share of retained profits, which can make a meaningful difference to the amount you are able to borrow.
A larger deposit can open up more options if your trading history is short, and having accounts signed off by a qualified accountant alongside a clean credit history will strengthen any application.
The honest picture is that mortgages for the self-employed involve more paperwork than a standard application and the choice of lenders does narrow the shorter your trading history. But for the majority of self-employed applicants with two or more years of accounts, the options are broadly the same as for employed borrowers. Even those who have been trading for just a year have more routes available than most people assume.
If you’re unsure where you stand, a short conversation can often save months or even years of uncertainty. Understanding your options early puts you in control of timing, expectations and next steps.
A quick, no‑obligation chat can clarify what’s genuinely possible and what steps would move you closer to buying, even if it’s not right now.
Get in touch with the team in Dunblane or Glasgow for a free, no-obligation chat.
Email us below or book in a meeting via the link above.
IMPORTANT INFORMATION
Your home may be repossessed if you do not keep up repayments on your mortgage. Mortgage Advice Brokerage is authorised and regulated by the Financial Conduct Authority (FCA no. 479200). The information contained in this article is for guidance purposes only and does not constitute advice. Your individual circumstances will affect which mortgage products are available to you.
