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

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.

Example deposit levels

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.

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.

What’s the average mortgage deposit in the UK?

Deposit sizes vary widely, but averages can help set expectations.

• First-time buyers often put down deposits in the mid-teens percentage range.
• Home movers may typically have higher deposits, because they can use equity from their current property.

Equity is the difference between what your property is worth and what you still owe on your mortgage. If your property has increased in value (or you’ve reduced your mortgage balance), that equity can be used towards the next purchase.

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.

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.

What if you can’t save for a big deposit?

If saving a large deposit feels out of reach, there are options that can reduce the amount you need to put down upfront.

Shared Ownership

Shared Ownership can allow you to buy a share of a property and pay rent on the remainder. This can lower the initial deposit requirement because you’re only buying part of the property.

Right to Buy schemes (where available)

Some buyers may be able to purchase a home they rent through specific schemes, often with discounts that can reduce the need for a traditional deposit.

Using support in your mortgage plan

Even if you can’t save a large deposit, it can still be possible to structure your mortgage approach around what you can afford—by considering:

• the right LTV target
• the term length
• the type of interest rate (for example fixed vs variable)
• your overall monthly budget

Key points to remember

• Your deposit is usually calculated as a percentage of the property price.
• A higher deposit typically means a lower LTV, which can broaden mortgage options.
• Deposit expectations can vary by lender, property type, and your circumstances.
• If you’re struggling to save, there may be alternative routes such as Shared Ownership or other scheme-based options (where eligible).

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.