How much deposit do I need for a mortgage in the UK?

If you’re buying a home, one of the first questions you’ll ask is: how much deposit do I actually need?

The short answer: most buyers will usually need at least 5% of the property price, although some no-deposit mortgages are available in limited circumstances.

The amount you put down can affect the mortgage deals and rates available to you, as well as how much you need to borrow.

Here’s what you need to know.

What is a mortgage deposit?

Your deposit is the part of the property price that isn’t covered by your mortgage. It might come from your own savings, a gifted deposit, or equity from a property you’re selling.

For example:

• Buying price: £250,000
• 10% deposit: £25,000
• Mortgage: £225,000

The size of your deposit determines your Loan to Value (LTV). This is the percentage of the property price you’re borrowing.

• 95% LTV = 5% deposit
• 90% LTV = 10% deposit
• 85% LTV = 15% deposit
• 80% LTV = 20% deposit

You can also use our mortgage deposit calculator to compare how different deposit percentages affect the cash you need upfront and the amount you need to borrow.

The lower your LTV, the lower the risk to the lender. That usually means better interest rates.

Minimum deposit: 5%

95% LTV mortgages are available from a range of UK lenders, allowing eligible buyers to purchase with a 5% deposit.

The government’s permanent Mortgage Guarantee Scheme also supports the availability of mortgages between 91% and 95% LTV, although not every 95% mortgage is necessarily offered through the scheme.

With a 5% deposit:

• You still need to meet the lender’s normal affordability and underwriting criteria
• Rates can be higher than at lower loan-to-value levels
• You may have fewer lender or product options
• Your credit history can affect which high-LTV mortgages are available to you

Is 10% a better option?

A 10% mortgage deposit (90% LTV) is often considered a good balance.

Using the same £300,000 property:

• 10% deposit: £30,000
• Mortgage: £270,000

Potential benefits of a 10% deposit include:

• Access to a wider range of mortgage products
• Potentially lower rates than at 95% LTV
• A smaller mortgage and potentially lower monthly payments
• A larger equity buffer if property values fall

For many buyers, saving an extra 5% can make a noticeable difference in long-term cost.

What if I have 15% or 20%?

Moving from 90% LTV to 85% or 80% LTV can open up additional mortgage products and may reduce the rate available to you. The exact benefit depends on how lenders are pricing their mortgages at the time.

Example on £300,000:

• 15% deposit: £45,000
• 20% deposit: £60,000

With a larger deposit:

• You borrow less overall
• You may have access to lower mortgage rates
• Your monthly repayments may be lower
• A smaller mortgage may be easier to fit within your affordability

If you’re close to one of these deposit “bands”, it’s worth checking how much difference it makes to your payments.

Does the type of mortgage affect the deposit required?

Yes, the deposit requirements depend on the type of mortgage you’re going for.

First-time buyers

A 5% deposit is a common starting point, although limited no-deposit options also exist.

Home movers

5% deposit options may also be available, with equity from your current property often forming some or all of the deposit.

Buy-to-let

Buy-to-let mortgages usually require a larger deposit than residential mortgages. The exact minimum depends on the lender, property and rental-income assessment.

New-build properties

Some lenders apply different maximum loan-to-value limits to new-build properties, particularly flats, so you may need a larger deposit.

Self-employed applicants

Being self-employed does not automatically mean you need a bigger deposit. Your income evidence, trading history and lender choice can be more important.

Adverse credit

Missed payments, defaults or other credit issues can reduce the number of high-LTV options available, and some cases may require a larger deposit.

Can I use a gifted deposit?

Yes. Many buyers use a gifted deposit from parents or family.

Lenders usually require:

• A signed gifted deposit letter
• Proof the funds are a gift, not a loan
• ID and source-of-funds checks

If the money must be repaid, it won’t usually be treated as a gifted deposit. The lender will need to know about any repayment obligation, which may also affect affordability.

What other costs should I budget for?

Your deposit isn’t the only upfront cost.

You may also need to budget for:

• Legal or conveyancing fees
• Survey costs
• Valuation fees, where charged
• Mortgage product or arrangement fees
• Broker fees, where applicable
• Property transaction tax, depending on where you’re buying and your circumstances
• Buildings insurance
• Moving costs

Property tax differs across the UK: England and Northern Ireland use Stamp Duty Land Tax, Scotland uses Land and Buildings Transaction Tax, and Wales uses Land Transaction Tax. The amount you pay can vary significantly, so it’s better to calculate this separately rather than assume a fixed percentage for buying costs.

If you’re buying in an area covered by it, our Stamp Duty calculator can help you estimate the tax separately from your deposit.

Is a bigger deposit always better?

Not necessarily. A bigger deposit can improve the mortgage numbers because you’re borrowing less, and it may give you access to lower rates.

But using more of your savings also means having less cash left for fees, moving costs, repairs and emergencies.

However, waiting years to save more could mean:

• Property prices rising
• Rent payments continuing
• Missing a good opportunity

It’s about balance. Whether to buy with a 5% deposit or wait until you have 10% depends on your finances, the mortgage options available and how much money you would have left after completion.

What deposit do I need personally?

The right deposit depends on:

• Your income
• Your credit history
• The type of property
• The lender’s criteria
• Current mortgage rates

Two buyers with identical deposits can receive very different mortgage offers depending on their circumstances.

Next step

If you’re unsure whether 5%, 10% or 15% is realistic for you, a quick affordability review can give clarity.

We can:

• Check how much you could borrow
• Show you rate differences at different deposit levels
• Explain whether waiting to save more would meaningfully improve your options

There’s no obligation — just clear guidance so you can plan properly.