How much deposit do I need to buy a house?

When you apply for a mortgage, you’ll usually need to put some of your own money down upfront. This is called a deposit. The deposit reduces the amount you need to borrow, and it’s one of the key factors lenders use when assessing mortgage applications.

In this guide, we’ll look at:

• how deposit size is typically calculated
• what “good” deposit levels can mean for your mortgage
• deposit expectations for different buyer types and property types
• what happens if you can’t save for a large deposit

For more detail, see our guides to:

• How to save a house deposit
• Buying your first home with a small deposit
• 95% LTV mortgages and 5% deposits
• Gifted deposits

Important: Mortgage lenders have their own criteria and not every borrower will be assessed the same way. Deposit requirements can vary by lender, product type, and your circumstances.

How much deposit do you need for a mortgage?

A mortgage deposit is usually expressed as a percentage of the property’s purchase price. The most common way to think about it is through loan-to-value (LTV):

• LTV = mortgage amount ÷ property value
• A higher deposit usually means a lower LTV

As a broad rule of thumb, many borrowers aim for a deposit in the region of 10%–15% of the property price. Some mortgages may be available with lower deposits, but availability depends on the lender, the product, and your circumstances.

If a property costs £250,000, then:

• 5% deposit = £12,500
• 10% deposit = £25,000
• 15% deposit = £37,500

Even when a lower deposit is possible, it may not always be the most cost-effective route once you factor in the mortgage rate and the overall affordability picture.

How deposit size affects your mortgage: LTV explained

LTV compares the mortgage amount to the property value. For example, if you buy for £250,000 and put down £25,000:

• mortgage amount = £225,000
• LTV = £225,000 ÷ £250,000 = 90%

Lenders often group mortgages into LTV bands. A higher LTV usually indicates higher risk, which can influence:

• the interest rate and fees you’re offered
• how strict the lender’s criteria are
• the likelihood of needing additional checks or documentation

Typical deposit levels you’ll see in the market

Deposit sizes vary depending on property prices and what you can afford to save. As a broad guide, first-time buyers commonly plan around:

5% deposit (95% LTV)

Often the minimum deposit level people plan for. It can be a route onto the property ladder if you meet lender affordability and eligibility requirements.

10% deposit (90% LTV)

A common “next step” for first-time buyers. Increasing your deposit can improve your LTV position and may help with product choice.

15%–25% deposits (lower LTV)

A larger deposit reduces the amount you borrow. Lower LTV lending is often treated as less risky by lenders, which can translate into more mortgage options.

Deposit-free routes

True deposit-free mortgages are uncommon. Where arrangements exist, they typically involve additional structures or conditions (for example, guarantor-style support or other assistance). The underlying risk profile for the lender is still relevant, so it’s important to understand the full terms. See our guide to no-deposit mortgages.

These first-time buyer products illustrate a 10% deposit on a residential purchase. Rates and eligibility depend on your circumstances and can change.

Why a bigger deposit can make a difference

A larger deposit can affect your mortgage in a few practical ways:

1. It can reduce your LTV. With a lower LTV, you’re borrowing less relative to the property value. That can make your application look less risky to a lender compared with a higher LTV arrangement.
2. It can influence the mortgage options you see. Mortgage products are often priced and structured based on LTV bands. Moving into a lower LTV band can open up more mainstream options.
3. It can reduce your monthly repayments. Because you borrow less, your monthly repayments are often lower (though the exact figure depends on the interest rate, term, and whether the mortgage is fixed, variable, or tracker).
4. It can strengthen your overall application. A deposit is only one part of the assessment. Lenders also consider affordability, credit history, and the stability of your income. But having a deposit you can comfortably fund can help you present a more robust mortgage position.

Is there a “recommended” deposit?

There isn’t one universal deposit figure that suits everyone. The right deposit depends on balancing:

1. Affordability, what monthly payments you can comfortably manage
2. Mortgage cost, how interest rates and fees vary by LTV
3. Practical savings, how realistic it is to build a larger deposit within your timeline

For many buyers, the goal is to reach an LTV position that offers a sensible mix of affordability and mortgage options.

How to estimate your deposit before you choose a property

Even if you don’t know the exact home yet, you can build a practical “ballpark” deposit target.

Start with a realistic property budget

Look at local listings for homes that match your needs (bedrooms, location, condition, and any must-haves). Once you have a rough price range, you can calculate deposit amounts for that range.

Consider your likely mortgage LTV

Many first-time buyers aim for the lowest deposit they can manage, but it’s worth comparing what happens if you save a bit more.

As a general rule, moving from a higher LTV to a lower LTV usually means a larger deposit but a smaller loan, and that can affect affordability and the mortgage options available.

Factor in other buying costs

A deposit isn’t the only upfront cost. Depending on your situation, you may also need to budget for items such as:

• legal fees
• survey/valuation costs
• moving costs
• Stamp Duty Land Tax (where applicable)

Ways to save for a mortgage deposit

Saving for a deposit is rarely about one big change, it’s usually about consistent progress and reducing friction.

Set a monthly target you can sustain

Choose a deposit goal based on your estimated property price and the LTV you’re aiming for. Then translate that into a monthly amount.

If your target feels too high, you may need to adjust the plan, either by increasing the time horizon or exploring options that reduce the deposit requirement.

Use the right savings approach

Many first-time buyers open a dedicated savings account so their deposit money is separated from everyday spending. The key is to keep the money accessible when needed, while aiming for competitive interest.

Tackle existing debts where possible

Credit cards, personal loans, and other high-cost borrowing can make saving harder. Paying down debts can free up cashflow and may also help your overall mortgage application.

Reduce spending in practical ways

Small changes can add up quickly. Examples include:

• cutting non-essential subscriptions
• limiting impulse purchases
• planning meals and shopping lists

The goal isn’t deprivation, it’s redirecting money towards the deposit. For more practical steps, read how to save a house deposit.

Can you get a mortgage with a smaller deposit?

In some cases, yes. Some mortgage products may be available with deposits lower than the “typical” 10%–15% range.

However, smaller deposits can come with trade-offs:

• you may have access to fewer mainstream options
• you may face higher interest rates depending on the product and lender
• you may need to meet more specific criteria

The right deposit level is ultimately the one that fits both your affordability and the mortgage options available to you.

Can I get a mortgage without a deposit?

Mortgages with 0% deposit are extremely uncommon.

If you’re aiming for a very small deposit, you may need to consider alternative approaches such as:

• using equity if you already own a property (for example when moving)
• exploring low-deposit mortgage products where available
• considering specialist routes where additional structure or security may be used

Where alternatives involve additional parties or security, it’s important to understand the potential impact on everyone involved.

Can I get my deposit back?

A deposit is part of the purchase price and is typically paid as part of the process before completion.

Whether you can recover it depends on the stage you’re at and the terms of the transaction. In general, once contracts have been exchanged, backing out can mean you lose the deposit. After completion, the deposit becomes part of your equity in the property.

Do you need a deposit when remortgaging?

Remortgaging is different from buying a home.

If you’re remortgaging your existing property, you usually don’t need to save a new deposit in the same way as a first-time purchase. Instead, lenders assess your application based on the property’s current value and your remaining mortgage balance.

Your equity (how much of the property you effectively own) is what matters for LTV and product selection. When you remortgage, your LTV at that time may be affected by:

• how much of the mortgage you’ve repaid
• changes in the property value
• changes in your circumstances and credit profile

Do you need a deposit when moving home?

When you move, you typically need a mortgage for the new property. Whether you need an additional deposit depends on how your current mortgage and equity work out.

Common scenarios:

• If your current property has equity: you may use that equity as part of the deposit for the new purchase.
• If the new property costs more: you may need to borrow more, and the lender will reassess affordability.
• If you’re porting your mortgage: some borrowers may be able to transfer certain mortgage deals to a new property, but the lender’s rules and the new property’s value can still affect what’s possible.

What deposit might be needed for different property types?

Deposit expectations can change depending on what you’re buying.

Second homes

Second home mortgages often involve stricter lending criteria than standard residential purchases. As a result, lenders may expect a larger deposit and may price the mortgage differently.

Buy-to-let properties

Buy-to-let mortgages are assessed differently from residential mortgages. Lenders typically expect a higher deposit than for owner-occupied homes, reflecting the different risk profile and the way rental income is treated.

Schemes and alternatives that may reduce how much you need to save

Depending on your circumstances, there may be options designed to help first-time buyers get onto the property ladder with less deposit than a standard mortgage. Availability and rules can change, and some schemes are location- or property-specific.

Guarantor and Joint Borrower Sole Proprietor (JBSP)

These arrangements can help some buyers access a mortgage with a smaller deposit by adding support to the application.

• Guarantor mortgages typically involve another person offering additional security if repayments aren’t maintained.
• JBSP can allow another person’s income to be considered without them necessarily taking ownership of the property, though they may still be responsible for repayments.

These structures can be useful, but they also come with responsibilities, so it’s important to understand the implications for everyone involved. Read more about guarantor mortgages and JBSP mortgages.

Shared Ownership

With Shared Ownership, you buy a share of the property and pay rent on the remaining share. Because you’re purchasing a portion rather than the whole property, your mortgage (and deposit) may be lower than buying outright. See our Shared Ownership guide.

First Homes (discounted new-build)

Some discounted new-build schemes can reduce the purchase price, which may reduce the deposit needed. The deposit is usually calculated based on the discounted value, but the exact approach can vary. Read the First Homes eligibility guide.

Lifetime ISA (LISA)

A Lifetime ISA can be used towards buying your first home for eligible buyers. It offers a government bonus on contributions, which can help boost your deposit over time. See the Lifetime ISA guide.

Right to Buy

If you currently rent from a council or certain housing providers, Right to Buy may allow you to purchase your home at a discount. This can reduce the amount you need to save compared with buying at full market value. The exact position depends on the scheme and your circumstances. Read about Right to Buy mortgages.

Gifts from family

Some lenders accept gifted deposits, typically requiring clear documentation so the lender can understand the nature of the funds.

Because how gifted funds are treated can vary, it’s important that any support is handled in a way that fits the mortgage process. See our gifted deposit guide.

Mortgage deposit planning checklist

Before you decide on a deposit target, it can help to review:

• your savings for the deposit
• whether you also need funds for fees and moving costs
• your monthly affordability (not just the deposit)
• how your deposit affects the loan-to-value you’re likely to fall into
• any factors that could influence lender criteria (for example credit history or income type)

Summary

The deposit you need to buy a house depends on the property price and the mortgage product you’re applying for. While many borrowers look at deposits in the 10%–15% range, lower deposits may be possible, and alternative routes can help if saving a large deposit isn’t realistic.

A deposit plan works best when it’s built around the mortgage options available at your target LTV and your ability to comfortably afford the repayments.