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The minimum deposit needed to buy a house in the UK is usually 5% of the property’s purchase price. However, in 2026 we’re seeing more lenders offering mortgages above 95% loan-to-value, with some providing 97%, 98% and even 100% mortgages for eligible borrowers. The deposit you’ll need ultimately depends on factors such as your income, credit history, the type of property you’re buying and the lender’s criteria. In this guide, we’ll explain how much deposit you may need, what affects your borrowing options, and how putting down a larger deposit could help you secure a more competitive mortgage.
For example, if you’re buying a £250,000 home:
- 5% deposit = £12,500
- 10% deposit = £25,000
- 15% deposit = £37,500
- 20% deposit = £50,000
You can buy with a 5% deposit.
A bigger deposit usually means better mortgage rates.
Gifted deposits are accepted by many lenders.
Lifetime ISAs can boost your savings.
Your deposit is different from your mortgage fees.
How HTG Mortgages Can Help
At HTG Mortgages, I work with over 120 lenders across the UK, meaning we have access to a wide range of mortgage products to suit all types of borrowers. Whether you’re a first-time buyer or looking to remortgage, we can help you determine how much you can borrow and find the right mortgage for your circumstances.
We also provide ongoing support, regularly checking your options after your mortgage is secured, ensuring that you never miss out on a lower rate.
How Does My Income Affect the Deposit I Need?
Your income doesn’t directly determine the size of your deposit, but it does influence how much you can borrow. Most lenders will assess your salary, bonuses, overtime, commission and any other regular income before deciding how much they’re willing to lend. If your income isn’t high enough to support the mortgage you need, you may have to increase your deposit to bridge the gap between what you can borrow and the property’s purchase price.
Does My Credit Score Affect My Deposit?
Yes, your credit history can have a significant impact. Borrowers with a strong credit profile are more likely to access mortgages with smaller deposits, while those with missed payments, defaults or County Court Judgments (CCJs) may need a larger deposit or have fewer lenders available. Improving your credit score before applying could increase your mortgage options.
Will a Bigger Deposit Get Me Better Mortgage Rates?
In most cases, yes. A larger deposit reduces the lender’s risk because you’re borrowing a smaller percentage of the property’s value. This is known as your loan-to-value (LTV). As your LTV falls, you’ll often qualify for lower interest rates, lower monthly repayments and a greater choice of mortgage products
Speak to an expert
Whether you’re buying your first home, moving house or remortgaging, HTG Mortgages is here to make the process as simple and stress-free as possible. I’ll compare mortgages from over 120 lenders, guide you every step of the way and help you find the right mortgage for your circumstances.
Can I Buy a House with a 5% Deposit?
Yes, many first-time buyers still purchase a home with a 5% deposit. Although there are fewer mortgage products available than for buyers with a larger deposit, many lenders continue to support 95% mortgages. In some situations, such as certain family-assisted schemes, it’s even possible to buy with a smaller deposit or no deposit at all if you meet the lender’s eligibility criteria.
Can I Use a Gifted Deposit?
Yes. Many first-time buyers receive financial help from parents, grandparents or other close family members. Most lenders accept gifted deposits, provided the money is genuinely a gift and doesn’t need to be repaid. You’ll usually need a signed gifted deposit letter and evidence of where the funds came from.
Can I Use a Lifetime ISA Towards My Deposit?
Yes. If you’ve saved into a Lifetime ISA (LISA), you can use both your savings and the government’s 25% bonus towards your house deposit, provided you meet the scheme’s rules. For many first-time buyers, a LISA can significantly reduce the time it takes to save for a deposit.
What Other Costs Do I Need to Budget for?
Your deposit is only one part of buying a home. You should also budget for solicitor’s fees, mortgage arrangement fees (where applicable), surveys, removals and, in some cases, Stamp Duty Land Tax. Making sure you have enough money set aside for these costs can help avoid unexpected financial pressure during your purchase.
How Can I Save a Deposit Faster?
Saving regularly, reducing unnecessary spending, using a Lifetime ISA and setting a realistic budget can all help you build your deposit more quickly. Some buyers also receive support from family or choose to buy a lower-priced property to get onto the property ladder sooner.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
