How much deposit do you need to buy a house? (UK guide)

How much deposit do you need to buy a house?

In the UK, your deposit is the portion of the property price you pay upfront. The size of your deposit affects how much you borrow, the mortgage deal options you may be offered, and—over time—your monthly payments and total interest.

There isn’t one single “correct” deposit for everyone. The right deposit depends on the property price, your income and outgoings, the mortgage term you’re considering, and how much risk you’re comfortable with.

This guide explains what deposit levels usually look like for first-time buyers and home movers, and how to plan a deposit that fits your budget.

What a deposit does to your mortgage (the key idea)

Most mortgage offers are priced based on your loan-to-value (LTV).

• LTV is the percentage of the property value you’re borrowing.
• Your deposit is the remaining percentage.

For example, if a home costs £300,000 and you put down £30,000, you borrow £270,000.

• Deposit = 10%
• Mortgage = 90%
• LTV = 90%

In general, a larger deposit usually means a lower LTV, which can:

• reduce the amount you need to borrow
• lower monthly repayments (because you’re borrowing less)
• improve the range of mortgage deals available
• reduce the risk of negative equity if property values fall

How much deposit do first-time buyers need?

Many first-time buyers start by looking at low-deposit mortgage options. In the UK, it’s sometimes possible to buy with deposits as low as 5% on certain repayment mortgages.

However, low deposits can come with trade-offs. A smaller deposit typically means:

• a higher LTV
• potentially higher interest rates
• higher monthly repayments compared with borrowing less

For many first-time buyers, the decision becomes a balancing act between getting onto the ladder sooner and building a larger deposit to improve affordability and deal options.

Typical deposit planning for first-time buyers

Based on market data for March 2025, the median figures for first-time buyers were:

• Median deposit: £48,350
• Median property value: £370,500
• Median mortgage term: 30 years

That equates to a median deposit of 14.65% (and 86% LTV) for March 2025.

How much deposit do home movers need?

Home movers often have an advantage: they may already own a property and can use equity built up over time. Equity can come from paying down the mortgage balance and/or from property price growth.

Because of this, home movers frequently aim for a higher deposit than first-time buyers, which can help them secure mortgage terms that better match their budget.

Typical deposit planning for home movers

Based on market data for March 2025, the median figures for home movers were:

• Median deposit: £75,000
• Median property value: £370,500
• Median mortgage term: 26 years

That equates to a median deposit of 20.24% (and 80% LTV) for March 2025.

Deposit sizes explained: 5%, 10% and 100% (and what they mean)

5% deposits (high LTV)

A 5% deposit generally means you’re borrowing 95% of the property value.

This can be a route for buyers who are focused on affordability and getting started, but it often results in:

• higher interest rates than lower-LTV options
• less flexibility if your circumstances change

10% deposits (often a common planning target)

A 10% deposit typically means borrowing 90%.

Many buyers use 10% as a practical target because it can:

• reduce the LTV compared with 95% options
• improve the likelihood of accessing a wider range of mortgage deals

It can also be a useful benchmark when you’re comparing how different deposit sizes affect repayments.

100% mortgages (no deposit)

It is sometimes possible to buy with no deposit in some circumstances, but these options are not common and may involve additional requirements.

In practice, no-deposit routes can include specialist structures such as guarantor mortgages or certain shared ownership arrangements.

Choosing a no-deposit approach can mean:

• higher interest rates
• higher monthly repayments
• greater exposure if property values fall (because you’re borrowing a larger share of the price)

How to build a deposit (a practical approach)

A deposit plan works best when it’s built around your timeline and your budget.

Consider the following steps:

1. Work out the target property price you’re aiming for (and how that varies by area).
2. Estimate the deposit you’d like to have, not just the minimum you could manage.
3. Check how deposit size changes borrowing and the likely monthly repayment level.
4. Factor in mortgage term choices (shorter terms can increase affordability pressure, but may reduce total interest).
5. Review your savings rate and how long it will take to reach your target.
6. Plan for costs beyond the deposit (moving costs, surveys, legal fees, and other purchase expenses).

Deposit-boosting options for first-time buyers

If you’re a first-time buyer, there are deposit-related options that may help you reach your goal sooner. These can include:

• Lifetime ISA (LISA): a tax-efficient way to save towards a first home, with government support on contributions.
• Government-backed deposit support schemes: certain schemes are designed to help eligible buyers with deposit requirements.
• Family support structures: in some cases, family members may be able to help in ways that are compatible with mortgage arrangements.

The availability and suitability of these options depends on your circumstances, the property type, and the lender’s requirements.

Negative equity and why deposit size matters

Negative equity is when the value of your home drops below the amount you owe on your mortgage.

A larger deposit can reduce the LTV, which may lower the risk of negative equity compared with borrowing a higher percentage of the property value.

It’s also important to remember that affordability is about more than the deposit—your mortgage payments must fit your budget even if interest rates change.

Buying a council house: do you need a deposit?

Some buyers may be able to purchase a council property using routes where a deposit requirement can be different from standard purchases.

In some cases, a discount may be used towards the purchase amount, which can affect whether you need to provide a deposit in the usual way. The exact position depends on the scheme and your circumstances.

Summary: choosing the right deposit level

• Your deposit size influences your LTV, which can affect mortgage deal options and repayments.
• First-time buyers often plan around low-deposit options, but many aim for a larger deposit over time.
• Home movers frequently have a higher deposit target thanks to equity built up.
• A deposit plan should also consider purchase costs, your savings timeline, and your comfort with risk.

If you’re comparing deposit sizes, it can help to focus on the total picture: how much you borrow, what repayments look like, and how resilient the plan is for the future.