The 60-second answer.
You technically only need 5% of the property's purchase price as a deposit. On a £250,000 home, that's £12,500. A handful of lenders will go lower in narrow circumstances (some 100% mortgages exist again, mostly for renters with a long, clean payment track record) — but for most first-time buyers, plan on 5% as the floor.
Realistically, 10% is a much better target. The jump from 95% to 90% loan-to-value opens up dramatically more lenders, better rates, and a wider choice of properties — including the new-build flats most 95% lenders won't touch.
If you can stretch to 15% or 20%, you're into the territory where you stop being a "high LTV" applicant and start getting prime rates. That's where the real savings live.
What each deposit level actually gets you.
- 5% deposit (95% LTV)
You're on the ladder, but on the most expensive side of the market. Fewer lenders, higher rates, tighter affordability checks. Most lenders won't touch new-build flats at this level. Workable — and sometimes the right call — but it's the most fragile position.
- 10% deposit (90% LTV)
The first big rate cliff. You get access to perhaps three times as many products as at 95%, materially better rates, and most lender restrictions on property type drop away. If a few extra months of saving can get you here, the maths usually says do it.
- 15% deposit (85% LTV)
Another meaningful step. Rates improve further, more lenders compete for you, and you start seeing genuinely competitive product fees.
- 20% deposit (80% LTV)
You're in mainstream prime territory. The rate differences above this point are smaller — useful, but not transformative.
- 25% deposit and above
Diminishing returns. The very best rates often kick in at 60% LTV (for very low-risk applicants), but most people stop seeing meaningful improvement past 25%. If you've got more, it might be better off-set against fees, stamp duty, or kept for emergencies.
What else you'll need beyond the deposit.
The deposit is the headline number. It isn't the only cash you need to find. Budget for:
- Stamp duty
If you're a first-time buyer, you currently pay no stamp duty on the first £300,000 of a home worth up to £500,000. Above that, the calculation gets more complex — and the rules can change at Budgets, so check the current bands when you're close to buying.
- Solicitor / conveyancer fees
Roughly £1,200–£2,000 including searches and disbursements. Get a fixed-fee quote, don't pay by the hour.
- Survey
£400–£1,500 depending on how thorough. For an older property, a fuller survey often pays for itself.
- Mortgage broker fee
Varies by adviser. Some are free to you (lender-paid only); some charge. Ours is typically £600 — and we tell you up-front exactly what the lender's procuration fee is so you know whether the advice is balanced.
- Moving and the new place
Removals, white goods, the curtains the previous owners took with them. £1,500–£3,000 for most moves.
Quick maths: £250,000 home with a 10% deposit
Deposit £25,000 · Stamp duty £0 (first-time buyer relief) · Legal fees ~£1,500 · Survey ~£500 · Broker fee ~£600 · Move-in budget ~£2,000
Total cash needed: roughly £29,600.
Plan for a deposit, then 5%–10% on top for the rest. People who plan just for the deposit are the ones who get caught short two weeks before completion.
Realistic ways to grow your deposit faster.
- Lifetime ISA (LISA)
Save up to £4,000 a year and the government adds 25% on top — up to £1,000 a year, free. You can use it for a first home worth up to £450,000. Catches: you can only open one before age 40, you have to save for at least 12 months before drawing on it for a property, and there are withdrawal penalties if you use the money for anything else.
- Gifted deposit
A parent or close relative can gift you part (or all) of your deposit. Lenders are completely fine with this — they just need a signed letter from the giver confirming it's a gift, not a loan. Make sure you have it.
- Joint applications
Buying with a partner doubles your saving capacity and usually boosts borrowing too. Just be very clear up-front about whose money went where and what happens if circumstances change.
- Shared ownership
Buy a share of a property (typically 25%–75%) and pay rent on the rest. Lower deposit needed, but it's not for everyone — there are ongoing rents and service charges, and selling can be harder. Worth a separate conversation.
- First Homes scheme
Eligible first-time buyers can buy newly built homes at a 30%–50% discount in some areas. Worth checking if any developers near you are participating.
About 95% mortgages — be honest with yourself.
If 5% is genuinely all you can save and waiting another year would mean prices rising faster than your savings, going at 95% can be the right call. If you could realistically get to 10% in six to nine months, the savings on rates and the wider lender choice usually justify the wait. There's no virtue medal for buying as soon as possible.
Frequently asked.
- Does a bigger deposit mean I can borrow more?
Not really — your borrowing is mostly capped by your income (typically around 4.5× combined gross). A bigger deposit lets you afford a more expensive house overall, and it gets you better rates, but it doesn't unlock more borrowing.
- Can a guarantor count as my deposit?
No — a guarantor backs your repayments, they don't put down cash. There are specific guarantor and family-assist mortgages where a relative's savings or property act as security, but they're niche. Worth a conversation if you're considering this route.
- Do I need 25% deposit for a buy-to-let?
Yes, mostly. Buy-to-let mortgages typically require 25%, occasionally 20%. The rules are different — see our buy-to-let page.
Your home may be repossessed if you do not keep up repayments on your mortgage. This guide is general information, not personal mortgage advice. For advice on your specific situation, book a free chat.