How much deposit do you need to buy a house? For many mainstream UK mortgages, 5% is a common minimum, though it isn’t universal, some lenders require more. Putting down 10%, 15% or 20% opens up more mortgage products and, in many cases, better interest rates. There’s no single figure that applies to every buyer or every lender, but this guide breaks down exactly what each level means in practice.
How Much Deposit Do You Need to Buy a House?
Here’s what different deposit percentages look like in cash terms, across a range of property prices:
| Deposit % | LTV | £200,000 | £250,000 | £300,000 | £400,000 | £500,000 |
|---|---|---|---|---|---|---|
| 5% | 95% | £10,000 | £12,500 | £15,000 | £20,000 | £25,000 |
| 10% | 90% | £20,000 | £25,000 | £30,000 | £40,000 | £50,000 |
| 15% | 85% | £30,000 | £37,500 | £45,000 | £60,000 | £75,000 |
| 20% | 80% | £40,000 | £50,000 | £60,000 | £80,000 | £100,000 |
| 25% | 75% | £50,000 | £62,500 | £75,000 | £100,000 | £125,000 |
What Do 5%, 10%, 15% and 20% Deposits Mean?
Each deposit level corresponds to a Loan-to-Value (LTV) ratio, how much of the property’s value you’re borrowing versus paying upfront.
- 5% deposit = 95% LTV — you’re borrowing 95% of the property’s value. This is typically the lowest deposit mainstream lenders will accept, though product choice is usually more limited.
- 10% deposit = 90% LTV — a common threshold where noticeably more mortgage deals tend to become available.
- 15% deposit = 85% LTV
- 20% deposit = 80% LTV — often where more competitive rates start to appear, though this varies by lender and by market conditions at the time.
Crossing certain LTV thresholds can sometimes make a meaningful difference to the rates and products on offer, but this isn’t guaranteed or identical across lenders, it’s worth comparing actual deals rather than assuming a specific percentage guarantees a specific rate.
Why Does Your Deposit Size Matter?
Your deposit becomes your initial equity in the property, the portion you own outright rather than owe to a lender. A bigger deposit means:
- Less risk for the lender, since they have more of a buffer if property prices fall
- Potentially better interest rates, because lower-risk lending is often priced more favourably
- More equity from day one, which can matter if you need to remortgage or sell sooner than expected
That said, putting every penny you have into the deposit isn’t necessarily wise, you’ll need cash for other costs too, covered below.
How Much Money Do You Actually Need to Buy a House?
The deposit is usually the biggest cost, but it isn’t the only one. Buyers also typically need to budget for:
- Stamp Duty (Stamp Duty Land Tax), where applicable, see GOV.UK’s official guidance for current rates
- Conveyancing/solicitor fees
- A survey (beyond the lender’s own valuation, if you want a proper structural check)
- Mortgage arrangement/product fees
- Moving costs
- Smaller costs like Land Registry fees and possibly a mortgage broker fee
One detail worth knowing if you’re saving via a Lifetime ISA: LISA funds can only be put toward the purchase price itself, not stamp duty, solicitor fees, or any other cost. You’ll need separate savings to cover those. Because of this, it’s sensible to keep a buffer beyond your deposit target rather than aiming to spend every penny you save on the deposit alone.
Can You Buy a House With a 5% Deposit?
Yes, 95% LTV mortgages exist and are aimed at buyers who don’t yet have a larger deposit saved. They can be a genuinely useful route onto the property ladder. The trade-offs tend to be a smaller range of available products and, often, less competitive interest rates than you’d get with a bigger deposit. Lenders will still assess your income, credit history, and overall affordability in the same way as any other mortgage, a 5% deposit doesn’t bypass those checks.
Can You Buy a House With No Deposit?
100% LTV (no-deposit) mortgages do exist in the UK, but they’re much less common than deposit-based mortgages and typically come with specific eligibility criteria, for example, some require a guarantor or family member to provide security. They’re not a mainstream, widely available option, and government schemes don’t automatically hand every buyer a 100% mortgage, eligibility and availability vary and change over time. If this route interests you, it’s worth speaking to a mortgage broker about what’s currently available.
Does a Bigger Deposit Mean a Better Mortgage Rate?
Often, yes, but not automatically or by a fixed amount. Lenders price mortgages partly based on LTV bands:
- 95% LTV (5% deposit)
- 90% LTV (10% deposit)
- 85% LTV (15% deposit)
- 80% LTV (20% deposit)
- 75% LTV (25% deposit)
Lower LTV bands are generally viewed as lower risk, which is often, though not always, reflected in the rates on offer. Rates change frequently and vary significantly between lenders, so the only reliable way to know what you’d actually be offered is to compare current deals or speak to a broker, rather than assuming a specific deposit size guarantees a specific rate.
How Much Can You Afford to Borrow?
Having a deposit doesn’t automatically tell you what you can buy, that also depends on how much a lender is willing to lend you, which is a separate calculation entirely. Lenders assess affordability based on:
- Your income
- Existing debts and financial commitments
- Regular monthly spending
- Credit history
- Number of dependants
- Their own specific affordability criteria, which vary by lender
For example, if you have a £30,000 deposit and a lender agrees to lend you £270,000, your total potential purchase price would be £300,000, before allowing for Stamp Duty and other buying costs. The amount a lender is willing to lend will depend on your individual circumstances and affordability assessment.
Ways to Help Build Your House Deposit
Lifetime ISA (LISA) — If you’re a first-time buyer, this is usually the biggest lever available. The government adds a 25% bonus on top of what you save, up to £4,000 a year (which counts toward your overall £20,000 annual ISA allowance), a maximum bonus of £1,000 a year. You generally need to make your first payment into a LISA before your 40th birthday, and can keep contributing until you turn 50. Full details are on GOV.UK’s Lifetime ISA page.
Gifted deposits — Family members can often contribute toward your deposit. Lenders typically require a signed letter confirming the money is a genuine gift, not a loan, since undisclosed loans can affect their lending decision.
Shared ownership — Some buyers reduce the deposit needed by purchasing a share of a property (rather than the whole thing) through a shared ownership scheme, paying rent on the remaining share. Availability and terms vary by scheme and provider, it’s not universally available everywhere.
How Long Does It Take to Save a House Deposit?
This depends entirely on your target and how much you can save each month. As a simple illustration (excluding interest, for clarity):
| Target | £100/month | £250/month | £500/month | £1,000/month |
|---|---|---|---|---|
| £10,000 | 8 years 4 months | 3 years 4 months | 1 year 8 months | 10 months |
| £20,000 | 16 years 8 months | 6 years 8 months | 3 years 4 months | 1 year 8 months |
| £30,000 | 25 years | 10 years | 5 years | 2 years 6 months |
| £40,000 | 33 years 4 months | 13 years 4 months | 6 years 8 months | 3 years 4 months |
Real timelines are usually faster than this table suggests, since it doesn’t account for interest or a Lifetime ISA bonus, both of which meaningfully speed things up.
Work Out Your Own Numbers
Rather than working from generic tables, our free House Deposit Calculator works out your specific target based on your own house price and deposit percentage, and shows how long it could take to reach it, including your Lifetime ISA bonus if you’re using one.
Try the House Deposit Calculator →
For more ways to speed up your saving specifically, see our guide: How to Save for a House Deposit Faster.
Worked Example: Buying a £300,000 House
| Deposit | Deposit Amount | Mortgage Needed |
|---|---|---|
| 5% | £15,000 | £285,000 |
| 10% | £30,000 | £270,000 |
| 15% | £45,000 | £255,000 |
| 20% | £60,000 | £240,000 |
| 25% | £75,000 | £225,000 |
Remember, the deposit isn’t the only money you’ll need, and whichever deposit level you’re aiming for, you’ll still need to pass the lender’s affordability assessment for the mortgage amount required.
Common Questions
Can I buy a house with a 5% deposit?
Yes, 95% LTV mortgages exist for this purpose, though typically with a smaller range of products and less competitive rates than larger deposits.
Can I buy a house with no deposit?
100% LTV mortgages exist but are uncommon and usually require specific eligibility, such as a guarantor. They’re not a mainstream, widely-available option.
Is a 10% deposit enough?
It’s enough to access a meaningfully wider range of mortgage products than a 5% deposit in many cases, though “enough” ultimately depends on your own affordability and the property you want.
Is 20% a good house deposit?
It’s often considered a strong position, commonly associated with more competitive rates, though actual offers always depend on the lender and your circumstances.
Does a bigger deposit reduce my mortgage rate?
Often, but not by a fixed or guaranteed amount, rates vary by lender and change over time.
Can my parents give me a deposit?
Yes, this is common. Lenders usually require a signed letter confirming it’s a gift, not a loan.
Can I use a Lifetime ISA for my deposit?
Yes, if you’re a first-time buyer. The government adds a 25% bonus, but the funds can only go toward the purchase price itself, not stamp duty or other fees.
Do I need money on top of my deposit?
Yes, budget separately for stamp duty (where applicable), solicitor fees, surveys, and moving costs.
Does my deposit affect how much I can borrow?
Not directly, borrowing capacity is a separate assessment based on income, debts, and affordability. Your deposit plus your borrowing capacity together determine what you can actually buy.
What is the minimum deposit for a first-time buyer?
Most mainstream lenders require at least 5%, though this isn’t universal across every lender or product.
This guide is for general information only and does not constitute financial or mortgage advice. Mortgage rates, lending criteria, and government scheme rules change over time and vary by lender, always check current details with a lender or qualified mortgage adviser before making decisions.
Related planner: House Deposit Calculator
Related guide: How to Save for a House Deposit Faster