For most buyers, the deposit is the first big number that determines whether a home purchase feels possible. In the UK, you will usually need at least 5% to 10% of the property price as a cash deposit, although the exact amount depends on the mortgage available to you, your finances and the property itself. A larger deposit can reduce how much you borrow and may unlock more competitive mortgage rates.
So there is no single house deposit UK buyers must save before they can start looking. The useful question is not only “What is the minimum?” but also “What deposit gives me a mortgage I can comfortably afford?”
What is the minimum deposit for a UK mortgage?
Many mainstream mortgages require a deposit of at least 5% of the purchase price. A 5% deposit means borrowing the remaining 95%, known as a 95% loan-to-value, or LTV, mortgage. The permanent Mortgage Guarantee Scheme introduced in July 2025 supports the availability of 91% to 95% LTV mortgages through participating lenders, so eligible first-time buyers and home movers can potentially buy with a deposit as small as 5%.
A 5% minimum deposit mortgage is not automatically available to everyone. Lenders still assess your income, spending, debts, credit history and whether repayments appear affordable. Some properties can also be harder to finance at a very high LTV.
How much deposit do you need at different property prices?
The calculation is simple: multiply the purchase price by your chosen deposit percentage. On a £250,000 home, a 5% deposit is £12,500, 10% is £25,000, 15% is £37,500 and 20% is £50,000.
For a £300,000 property, the same deposit percentages equal £15,000, £30,000, £45,000 and £60,000. Deciding on a realistic price range before saving toward an arbitrary target can make your plan much clearer. Our home buying budget guide can help you consider the deposit alongside other purchase costs.
Why does a bigger deposit often help?
Mortgage pricing is closely linked to LTV. Put down 10%, and you need a 90% LTV mortgage. Put down 15%, and the LTV falls to 85%. Because lower LTV lending generally presents less risk to the lender, larger deposits can give buyers access to a wider range of deals and potentially lower interest rates.
A bigger deposit also reduces the mortgage balance, so monthly repayments may be lower. However, stretching your deposit so far that you have no cash left for legal fees, surveys, moving costs, repairs or emergencies can leave your finances too tight after completion.
Your deposit is only half of the affordability equation
Saving 10% or even 20% does not mean a lender will automatically offer the remaining amount. Mortgage lenders also decide how much they are prepared to lend based on affordability. Someone with a £40,000 deposit may still be unable to buy a £400,000 home if their income and outgoings do not support a £360,000 mortgage.
Estimate both sides before setting a savings target: the deposit you can build and the mortgage you are realistically likely to qualify for. A mortgage affordability guide can help explain why the purchase price must work with both figures.
What happens if the lender values the property lower?
This is an easy detail to miss. If you agree to pay £250,000 but the lender values the property at £240,000, the lender may calculate its maximum loan using the lower figure. That can create a funding gap.
For example, if you expected to use a £25,000 deposit with a 90% LTV mortgage, a lower valuation may mean adding more cash, renegotiating with the seller or changing the mortgage arrangement. Keeping some flexibility in your savings can therefore be useful.
Should first-time buyers aim for 5% or 10%?
A 5% deposit can help you buy sooner, which may matter more than waiting several extra years to reach 10%. But if you can build a 10% deposit without delaying your plans excessively, it may improve the choice of mortgages available and reduce how much you need to borrow.
Compare the full cost rather than focusing on the deposit percentage alone. Look at the interest rate, product fees, monthly repayment and how much cash remains after completion. First-time buyer costs should also be budgeted separately.
Ways to build your deposit more efficiently
Start with a target based on an approximate property price, then automate a monthly transfer into dedicated savings. Review recurring expenses and direct one-off income, bonuses or refunds toward the deposit rather than relying only on what is left each month.
If you are an eligible first-time buyer, a Lifetime ISA can help. You can currently contribute up to £4,000 per tax year and receive a 25% government bonus, up to £1,000 a year. To use it toward a first home, conditions apply, including a property price of £450,000 or less, buying with a mortgage and having made your first Lifetime ISA payment at least 12 months before the purchase.
Frequently asked questions
Can I buy a house in the UK with a 5% deposit?
Yes. Some 95% LTV mortgages allow eligible buyers to purchase with a 5% deposit. Approval still depends on affordability checks, credit criteria and the property being acceptable to the lender.
Is a 10% deposit better than 5%?
Often, yes. A 10% deposit reduces the mortgage to 90% LTV and may give you access to more deals or better pricing. The best choice depends on how long the extra saving would take and what the available mortgages cost.
Do I need to save money in addition to the deposit?
Yes. Budget separately for conveyancing, surveys, moving expenses and any applicable property taxes. Keeping an emergency reserve after completion can also make the first months of homeownership easier to manage.
Can I get a mortgage with no deposit?
Some 100% mortgages exist, but they are less common and may have specific eligibility conditions. Borrowing the full property value also leaves less protection against negative equity if prices fall.
How much should you aim to save?
For many UK buyers, 5% is the practical minimum and 10% is a stronger target if achievable. Deposits of 15% or 20% can reduce borrowing further and may improve mortgage options, but the right figure is the one that fits your likely purchase price, affordability and wider cash needs.
Before viewing homes seriously, calculate your deposit at several price points, estimate the mortgage you could afford and keep money aside for buying costs. That gives you a more useful target than chasing the biggest deposit possible without considering the rest of your finances.