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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteFor a UK mortgage, around 5% of the property price is a common minimum starting point, while 5% to 10% is a practical planning range. On a £250,000 home, that means £12,500 to £25,000. A deposit does not guarantee approval: lenders also test your income, outgoings, credit history, employment and whether the proposed payments remain affordable if circumstances change.
The quick answer: plan for at least 5%, if your circumstances fit
Most UK mortgage deals have traditionally required at least a 5% deposit, according to MoneyHelper. That is a starting point rather than a universal rule. The required cash depends on the property price, the mortgage product, the property itself and the lender’s risk assessment.
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MoneyHelper describes 5% to 10% as a usual deposit range. The arithmetic is straightforward:
| Purchase price | 5% deposit | 10% deposit | Mortgage at 5% deposit | Loan-to-value (LTV) |
|---|---|---|---|---|
| £200,000 | £10,000 | £20,000 | £190,000 | 95% |
| £250,000 | £12,500 | £25,000 | £237,500 | 95% |
| £280,000 | £14,000 | £28,000 | £266,000 | 95% |
The £280,000 example reflects MoneyHelper’s illustration of a typical 5% minimum deposit. Its savings guidance uses a £250,000 home and shows £12,500 at 5% or £25,000 at 10%. These are calculations and planning examples, not promises that a lender will offer a mortgage at those percentages.
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What “qualify” means to a lender
Having the minimum deposit gets you past one part of the assessment. It does not establish that you can borrow the amount needed for the purchase.
Deposit and loan-to-value
Your deposit determines how much of the property’s value you need to borrow. LTV is the mortgage divided by the property value. For a £200,000 home with £20,000 down, you borrow £180,000. £180,000 divided by £200,000 equals 90% LTV.
Affordability
GOV.UK says a lender considers “the total amount you can borrow; whether a deposit is needed; how affordable your monthly mortgage payments will be.” The affordability assessment uses your income and current outgoings and considers changes that could affect repayment, such as higher interest rates or redundancy. A buyer with a 5% deposit can therefore be declined if the requested loan is too large for their verified finances.
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Lenders can also weigh employment status, credit profile, loan-to-income, property type and location. Criteria differ between products and change over time. A deposit percentage should never be treated as an automatic eligibility threshold for every borrower or property.
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Why a larger deposit can improve your mortgage options
A larger deposit lowers your LTV, so you borrow less and expose the lender to less risk. Lower LTV bands often give access to a wider selection of products and, usually, lower interest rates. MoneyHelper says the most competitive rates are typically around 60% LTV, equivalent to a 40% deposit, although the actual deal available depends on the lender, applicant and market when you apply.
Compare the whole cost rather than a headline rate. A product with a lower rate can have a larger arrangement fee, while a fee-free product may carry a higher rate. Consider the rate period, fees, monthly payment, early-repayment charges and what happens when an introductory deal ends.
| Deposit on a £200,000 property | Mortgage borrowed | LTV | Typical implications |
|---|---|---|---|
| £10,000 (5%) | £190,000 | 95% | Smallest common starting deposit; higher borrowing and fewer products may apply. |
| £20,000 (10%) | £180,000 | 90% | Lower borrowing than at 95% LTV and potentially more choice. |
| £40,000 (20%) | £160,000 | 80% | Lower LTV and repayments, subject to affordability and product criteria. |
| £80,000 (40%) | £120,000 | 60% | Around the LTV level MoneyHelper identifies as typically having the most competitive rates. |
The table shows the effect of the deposit mathematically; it does not quote current rates or guarantee a particular product.
Can you get a mortgage with less than 5%?
There are 100% mortgages, but MoneyHelper says they are uncommon. A lender offering one still applies an affordability and eligibility assessment, and availability can depend on the product and property. “No deposit” does not mean “no cash required”: you may still need money for legal work, valuation or survey costs, moving expenses and taxes.
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The main risk is negative equity. If the property’s value falls after you buy, you could owe more than the home is worth. Selling may then require you to find extra money to repay the mortgage, and remortgaging can be difficult. Low-deposit borrowing can also cost more and leave you with higher monthly payments because the loan is larger.
Do not borrow an unsecured loan for a deposit without checking the lender’s rules. Additional debt affects affordability and some mortgage lenders will not accept borrowed deposit funds. Any gifted deposit should be documented, and the lender may require a declaration from the person giving it.
The deposit is only part of the upfront budget
Keep a separate reserve for purchase costs. MoneyHelper lists solicitor fees, surveys and removals. GOV.UK also identifies taxes such as Stamp Duty Land Tax. The amount varies with the property’s price, location, whether you are a first-time buyer and whether you own other property. Because these costs depend on your circumstances and can change, do not assume that every pound saved can be used as the deposit.
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- Survey or valuation: the lender’s valuation is not necessarily a detailed condition survey for you.
- Tax: applicable property taxes, including Stamp Duty Land Tax in relevant parts of the UK.
- Moving and setup: removals, storage, insurance, repairs and essential furniture.
- Cash buffer: an emergency reserve after completion, rather than exhausting savings on exchange.
How to calculate your own target deposit
- Choose a realistic price range. Base it on an affordability conversation or decision in principle, not only on a listing price.
- Calculate several LTV points. Multiply the target price by 5%, 10%, 15%, 20% and any larger amount you could reasonably save.
- Add purchase costs separately. Keep a line in your budget for legal fees, surveys, removals and applicable taxes.
- Stress-test the monthly payment. Include utilities, council tax, insurance, maintenance and existing debts, then consider what happens if rates rise or income falls.
- Keep an emergency reserve. Do not make the deposit so large that you have no money for an unexpected repair, job loss or other shock.
- Check the source of every pound. Lenders may ask for bank statements and evidence showing whether savings are personal, gifted or borrowed.
For example, on a £250,000 target, 5% is £12,500 and 10% is £25,000. If you need £6,000 for transaction and moving costs, your cash target would be £18,500 or £31,000 respectively, before allowing for an emergency fund. The £6,000 in this illustration is not a standard allowance; use quotes for your own purchase.
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- SPEAKS YOUR LANGUAGE: Keys clearly labeled in residential mortgage finance terms like Loan Amt, Int, Term, Pmt; this industry-standard calculator is super easy to use on all realty financing matters from finding a loan that works for your client to considering trust deeds investments, or finding remaining balances or balloon payments and more
- CONFIDENTLY AND EASILY SOLVE: Clients' financial questions whether they're buyers, sellers, investors or renters. Increase your perceived professionalism as a new agent, experienced broker or seasoned loan officer. Close more home sales and impress your clients with fast, accurate answers to all their real estate finance questions from PITI Payments to IRR, NPV and Cashflows
- DEDICATED BUYER QUALIFYING KEYS: Enter client's income, debt and expenses to pre-qualify them to only show properties they can afford. Include tax, insurance and mortgage insurance then compare loan options and payment solutions to give your client choices before they make an offer to buy
- FIGURE OUT THE RIGHT LOAN: For your client at the press of a button for jumbo, conventional, FHA/VA, or even 80:10:10 or 80:15:5 combo loans; check to see if ARMs or bi-weekly loans, quarterly payments or if interest-only payments are the answer; giving your client more choices; easily perform what if loan or TVM calculations find loan amount, term, interest or PITI or PI payments
- BECOME AN INVALUABLE RESOURCE: To your clients by reducing their confusion and uncertainty; ensuring they are able to make a purchase offer; knowing they can afford the down payment; and determining which is the right loan for them. Date-math for listings and contracts too. Comes with a protective slide cover, quick reference guide, pocket user's guide, and long-life battery
Saving for a deposit
MoneyHelper’s saving guidance highlights the Lifetime ISA as one possible way to build a deposit, subject to its eligibility rules and scheme conditions. Check the current government rules before relying on it, including age limits, contribution limits, the first-home criteria and withdrawal charges.
Separate the deposit from short-term spending money so you can track progress. A standing-order transfer after payday, a clear target date and regular review of the intended property price can make the plan measurable. If prices, income or your target area change, recalculate the percentage rather than treating an old cash figure as sufficient.
Family assistance can help, but document whether it is a gift or a loan. A lender will want the arrangement to be clear, and a repayment obligation can affect affordability.
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First-time buyers: is the requirement different?
Being a first-time buyer does not create one universal deposit percentage. Some products or schemes may be aimed at first-time buyers, but their terms and eligibility are specific and can change. You still need to satisfy the lender’s affordability, credit and property requirements.
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MoneyHelper’s first-time-buyer guide is useful context, but its examples should not be mistaken for a guaranteed minimum. The relevant question is how much you need for the particular price, product and circumstances you can evidence now.
What deposit size should you aim for?
If 5% is all you can raise
Start with affordability, not the assumption that the purchase is approved. A 95% LTV mortgage may have fewer choices and higher payments. Keep extra cash for fees and emergencies, and check how a rate increase would affect your budget.
If you can reach 10%
A 10% deposit reduces the mortgage compared with 5% and may open additional LTV bands. Compare the cost of waiting to save more with the cost of borrowing now, including rent, price changes and the interest-rate risk. There is no universally correct answer.
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If you can put down 20% or more
A lower LTV can reduce repayments and may improve product choice, but using every saving for the deposit can leave you financially fragile. Retain a cash buffer and compare total costs rather than assuming the lowest LTV automatically produces the cheapest outcome.
Background: deposits have become larger for many buyers
A 2025 Financial Conduct Authority discussion paper, DP25/2, compared a median first-time-buyer deposit of just over £13,600 in 2006 with £37,400 in its more recent comparison. The extract does not state the comparison year for the £37,400 figure, so it should be read as background rather than a current requirement, forecast or target for an individual buyer.
When professional help is useful
A regulated mortgage adviser or broker can help if your income is variable, you are self-employed, you have existing credit commitments, your deposit is gifted, or the property is unusual. They can explain which lenders may consider your circumstances, but no adviser can guarantee approval or a particular rate. Ask how advice is paid for and verify that the firm is authorised before sharing sensitive documents.
Pre-application checklist
- Have you calculated 5%, 10% and other realistic deposit levels for your target price?
- Have you budgeted legal fees, surveys, removals, taxes and an emergency reserve separately?
- Can you evidence your income, savings history and any gifted funds?
- Have you listed all regular outgoings, debts and childcare or household commitments?
- Could you still afford the payment if the rate increased or your income changed?
- Have you checked the property’s type, location and condition against likely lender criteria?
- Have you compared total cost, fees and future payment risk rather than a headline rate alone?
Bottom line
In the UK, plan on a common minimum starting point of about 5% of the purchase price, with 5% to 10% a useful typical range. A £250,000 home therefore needs roughly £12,500 to £25,000 as a deposit. The lender’s decision also depends on affordability and individual circumstances, and you must budget separately for buying costs and a financial safety buffer.
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