How much deposit do I need to buy a house?

If you want to get on the property ladder, one of the first questions you’ll need to know the answer to is 'How much deposit do I need to buy a house?' We look at why a bigger deposit is better, the minimum you need to save and how to buy a house with no deposit.

Rebecca Gamble Consumer Journalist

How much deposit do I need to buy a house?

You’ll usually need at least a 5% deposit to buy a house. This means if you’re buying a house for £250,000 you’ll need at least a £12,500 mortgage deposit.

However, the bigger your deposit, the bigger the choice of mortgages you’ll typically have. And you’ll usually get access to better mortgage rates too.

In some cases, you can buy a house without having a deposit, read on to find out more.

Saving a bigger deposit to buy a house is easier said than done but there are ways you may be able to boost your deposit, such as looking to the Bank of Mum and Dad for help or by taking out a Lifetime ISA. Find out more in our guide How to Save for a Deposit.

Use our calculators to see how much you can afford, how much the mortgage will cost you monthly and more

What’s the average first time buyer deposit for a house in the UK?

The average first time buyer deposit in 2023 was £53,414, according to Halifax and the average deposit size was 19%. However, Halifax’s figures showed how much this varied across the UK:

Mortgage calculators are a good place to start to see how your deposit affects how much you can afford to borrow.

What’s the minimum deposit mortgage available?

For many lenders, the minimum mortgage deposit required is 5%. However, some lenders require larger deposits if you’re buying a new build home, buying a second home or buy to let property.

It is possible to get a mortgage with no deposit but you’ll either need to meet strict criteria or have someone prepared to guarantee your mortgage. Read on for more on these.

The benefits of a large house deposit

There are a number of benefits of having a large house deposit including:

• Better mortgage rates: The bigger your deposit, the lower your ‘Loan to Value’ (LTV) is, this is the size of your mortgage as a percentage of the property price. For example, if you buy a £200,000 property with a 10% deposit of £20,000, you’ll need a mortgage to cover the remaining 90% of the property’s value. This is called a 90% LTV mortgage. The lower your LTV, the better the mortgage rates you’ll generally get access to.
• Lower monthly repayments: If your deposit is bigger, you’ll be borrowing a smaller amount to buy your home. This means your mortgage repayments will be cheaper.
• Better chance of being accepted: You’ll need to pass your lender’s affordability checks to be accepted for a mortgage. Having a bigger deposit usually makes it more likely that you’ll be accepted.

Get free advice from award-winning mortgage brokers today at our partners L&C. You can speak to them or start the process online, and use our range of calculators to see how much you can afford

What deposit do I need to get lower mortgage interest rates in 2024?

As we explain above, the bigger your mortgage deposit, the less you’ll have to borrow and the lower the mortgage rate you’ll get access to. This is because you are stumping up more of your own money and the bank of building society are lending you less so taking on less risk. As a result they can offer you more favourable mortgage rates that will in turn make your mortgage cheaper to pay back. It typically works along these lines:

• 5% deposit (95% LTV) – highest interest
• 25% deposit (75% LTV) – lower interest
• 40% deposit (60% LTV) – lowest interest

Find the best mortgage rates on offer this month according to different deposit amounts in our First Time Buyer Mortgage Rates guide.

How much can I borrow on a mortgage?

The amount you can borrow on a mortgage depends on your income, although lenders will also assess your outgoings when looking at affordability.

Banks will usually lend up to 4.5 times your salary. So if you want to buy a £250,000 house with a 5% deposit of £12,500, and you’re buying by yourself you would typically need to earn around £53,000. Our how much can I borrow calculator is a good place to start to see how much you can afford to borrow for a mortgage based on your income. 

How much deposit do I need to buy a house if it’s a new build?

The minimium mortgage deposit you’ll need if you’re buying a new build home is usually higher. And you’ll usually need a bigger deposit if it’s a new build flat than if it’s a new build house. But it varies by lender. So speak to a fee-free mortgage broker to find out your options. Also, you may be able to buy a new build property with a 5% deposit with the Deposit Unlock scheme (read on for more on this).

Can you buy a house with a 5% deposit?

Yes, there are a number of ways to buy a house with a 5% deposit:

• 95% mortgage: 95% mortgages became much more widely available after the government introduced the Mortgage guarantee scheme in 2021 to encourage lenders to offer 95% mortgages. The scheme runs until June 2025. However, many lenders offer 95% mortgages without using the scheme.
• Deposit Unlock: This allows you to buy a new build home from a participating home builder with just a 5% deposit, using a mortgage from a participating lender. These mortgages are only available via mortgage brokers. First time buyers and home movers can use the Deposit Unlock scheme.
• Own New Deposit Drop: This scheme lets people buy a new build home with a 5% deposit. It launched in the North East and Yorkshire in 2023, with plans to broaden out where it’s available in due course. Find out more in our guide Own New Rate Reducer Explained.

The disadvantages of buying a house with a 5% deposit mortgage

If you’re buying a house with a 5% deposit mortgage:

• You’ll usually pay a higher mortgage rate.
• Your mortgage repayments will be bigger than if you had a larger deposit. This can make it harder to pass affordability tests.
• You may have a smaller choice of lenders.

Get free advice from our award-winning mortgage partners today. You can speak to them or start the process online, or use a range of calculators to see how much you can afford

Can you get a mortgage with a 10% deposit?

Yes, 10% deposit mortgages are very common. You’ll usually get access to better rates than if you have a 5% mortgage deposit, although if you can save a 15% deposit you may find rates are even lower.

Can I get a 100% mortgage?

Yes it’s possible to get a 100% mortgage. In 2023, Skipton Building Society launched the 100% ‘Track Record’ mortgage designed to help renters buy a property without needing a deposit if they have a proven track record of paying rent. However, there are risks of taking out a 100% mortgage, not least the risk of negative equity. Also, as there is currently only one 100% mortgage product to choose from you can’t shop around.

There are other types of no deposit mortgages with a 100% LTV available to buyers that work in a different way:

• Guarantor mortgages: This is when a loved one, usually a parent, takes on some of the mortgage’s risk by acting as a guarantor. This usually means them offering their savings or their home as security against the loan and committing to making the mortgage payments if the borrower defaults. For more information read our guide on Guarantor mortgages explained.
• Family offset mortgages: These work in a similar way to guarantor mortgages that use savings as security. Although the main difference is that your loved one won’t earn interest on their savings. But on the flip side, as it’s an offset mortgage, you will only pay interest on the difference between the total value of the mortgage and the value of the savings held in the linked savings account.

Find out more in our guide How to get a mortgage with no deposit.

Can my parents contribute towards my deposit?

Yes, your parents can contribute to your deposit. However, if you’re expecting a gifted deposit, it’s a good idea to talk through your options with our mortgage brokers L&C as they will know what different lender rules apply and can help you find the best mortgage deal. Find out more in our guide Gifted deposits explained.

How much deposit do I need for a Buy to Let?

If you want to get a Buy to Let mortgage you’ll usually need at least a 15% deposit but the bigger your deposit, the better the deal you’re likely to get. Find our more in our guide Buy to Let mortgages explained and get up-to-date mortgage rates in our guide Best Buy to Let mortgage rates.

How much deposit do I need for a second house?

You’ll usually need to put down at least a 25% deposit if you’re buying a second home. Find out more about second home mortgages and what else you should consider in our guide Buying a second home: What you need to know.

Who do I pay the mortgage deposit to?

You’ll pay the mortgage deposit to your conveyancer at the point of exchange of contracts.

How much deposit do I need to buy a house if I have bad credit?

You may need to save a bigger deposit to buy a house if you have bad credit. But it will depend on your circumstances, including what your credit issues were and how recent they were too. Find out more in our guide on Bad credit mortgages.

I have a large deposit but low income: Can I get a mortgage?

There’s no simple answer to this as it will depend on the size of your deposit, how much you want to borrow and how much your income is. So it’s a good idea to speak to a fee-free mortgage broker. They’ll be able to look at your situation in detail and explain your options.

Calculate the extra costs of buying a property

It’s worth noting that there are more costs to consider than just the deposit. As well as your deposit you’ll need to factor in the following costs:

Stamp duty: Find out more, including about first-time buyer relief, in our guide on Stamp duty: who pays it? when? and how much?, which includes a stamp duty calculator.

Legal fees: You’ll need to pay conveyancing fees when buying a house. How much conveyancing fees cost depends on the value of the home you are buying, whether it is freehold or leasehold and the local searches you have done. Compare conveyancing quotes from regulated and reviewed conveyancing solicitors that cover your area

Survey costs: The cost of the survey depends on what type of survey you choose. See our guide on how much a survey costs for more details.

You may also need to pay for a mortgage valuation survey, mortgage arrangement fees and mortgage broker fees if you don’t use a fee-free mortgage broker like our partners at L&C.

Get free advice from our award-winning mortgage brokers today. You can speak to them or start the process online, or use our range of calculators to see how much you can afford

Frequently Asked Questions