For many buyers, the deposit is the first big hurdle in getting a mortgage, but the percentage you put down affects far more than the amount you need to save. It can influence which lenders will consider you, the rates available, the size of your repayments and how exposed you are if property values fall. In the UK, a 5% deposit can be enough for some mortgages, but that does not mean 5% is the right target for every buyer.
What are the typical mortgage deposit requirements in the UK?
Most buyers should expect to need at least 5% to 10% of the property price as a deposit. A 5% deposit means borrowing 95% of the property’s value, while a 10% deposit means borrowing 90%. Some 100% mortgages exist, but they are relatively limited and often come with specific eligibility conditions.
For a £250,000 property, a 5% deposit is £12,500 and a 10% deposit is £25,000. On a £350,000 property, the same percentages become £17,500 and £35,000. The minimum mortgage deposit UK buyers need therefore depends on the lender’s criteria as well as the home’s price.
The government’s permanent Mortgage Guarantee Scheme supports eligible mortgages between 91% and 95% loan-to-value, allowing some buyers to purchase with a deposit as small as 5%. Individual lenders still apply their own affordability, credit and property rules.
How your deposit changes mortgage LTV
Mortgage LTV, or loan-to-value, compares the amount you borrow with the value of the property. If you buy a £300,000 home with a £30,000 deposit, you need a £270,000 mortgage, producing a 90% LTV.
A larger deposit produces a lower LTV. A 5% deposit normally means 95% LTV, 10% means 90% LTV, 15% means 85% LTV and 25% means 75% LTV. Lenders often price mortgages in LTV bands, so reaching the next band can matter more than adding a small amount that leaves you in the same one.
A practical deposit example
Imagine you plan to buy for £280,000 and have saved £26,000. A full 10% deposit would be £28,000. It may be worth comparing the cost of applying now with the cost of waiting until you reach £28,000. Moving into a 90% LTV range could open more products or improve pricing. The exact benefit depends on live rates and fees, so compare the total cost rather than assuming every extra pound of deposit produces the same saving.
Why a larger deposit can help
A larger deposit usually gives the borrower access to a wider choice of products because the lender is taking less risk. Lower-LTV mortgages often have more competitive rates than high-LTV deals, although pricing changes regularly.
However, putting every available pound into the deposit is not always sensible. Buyers still need money for conveyancing, surveys, moving costs, possible mortgage fees and unexpected expenses. Keeping an emergency reserve can be more useful than stretching to a slightly lower LTV and having no accessible savings.
Your deposit does not replace affordability checks
A large deposit can strengthen an application, but it does not override affordability. Mortgage lenders must assess whether you can afford the repayments. They commonly review income, regular expenditure, existing credit commitments, bank statements and other circumstances that affect your ability to pay.
A bigger deposit does not compensate for a loan that is unaffordable. Deposit size and borrowing capacity are separate tests that both need to work.
Which deposit sources may lenders accept?
The deposit source mortgage lenders accept varies by provider, but common sources include personal savings, proceeds from selling another property, inheritance and financial gifts from family members. Other legitimate sources may be acceptable, but the evidence required can differ.
You should expect to prove where the money came from. Lenders, conveyancers and estate agents have responsibilities relating to identity checks, fraud prevention and anti-money-laundering controls. Evidence might include savings statements, documents showing a property sale, inheritance paperwork or a gifted-deposit declaration.
Gifted deposits need to be disclosed
If a relative is contributing to your deposit, tell your lender or broker early. The lender may want confirmation of the amount, who is providing it, their relationship to you and whether the money is a genuine gift rather than a loan. A gift that gives the donor a financial interest in the property may be treated differently from an unconditional gift.
Borrowing the deposit through a personal loan or credit card can be problematic because it increases your debts and monthly commitments. Some lenders will not accept borrowed deposits, while others may assess them under specific criteria. Check the intended lender’s rules before relying on borrowed money.
Prepare the paper trail before applying
Deposit verification is easier when the money has a clear history. Keep statements showing savings building up, retain evidence for large transfers and avoid moving funds repeatedly between accounts without a clear reason. If part of the deposit comes from overseas, a gift or the sale of an asset, ask in advance what documents your lender and conveyancer will require.
Frequently asked questions
Can I get a UK mortgage with a 5% deposit?
Yes. 95% LTV mortgages are available to eligible borrowers, including products supported by the permanent Mortgage Guarantee Scheme. Approval still depends on the lender, your affordability, credit profile and the property.
Is a 10% deposit much better than 5%?
It can be. Moving from 95% to 90% LTV may give you access to more products and potentially better pricing. Compare rates, fees and overall borrowing costs at both LTV levels.
Can my parents give me my mortgage deposit?
Often yes. Gifted deposits are widely used, but the lender and conveyancer will normally require evidence of the gift and its source. The donor may also need to confirm whether the money is repayable and whether they will have any interest in the property.
Do I need more than the deposit to buy a home?
Yes. Budget separately for legal work, surveys, moving expenses, possible mortgage or valuation fees, taxes where applicable and a sensible cash reserve.
Choosing the right deposit
Mortgage deposit requirements in the UK are best viewed as a combination of minimum eligibility, LTV pricing and affordability. A 5% deposit may get you into the market, while 10%, 15% or more can improve your options and reduce the amount you need to borrow. The most useful target is often the deposit that reaches a stronger LTV band without exhausting the savings you still need for fees and emergencies.
Before applying, check the current criteria for the mortgage you want, confirm that your deposit source is acceptable and organise evidence showing where the money came from. That preparation can make the process smoother and help you judge whether buying now or saving a little longer gives you the stronger overall position.