First-time buyers calculating how much deposit they need for a home in the UK
Quick Answer
Most UK mortgage lenders require at least a 5% deposit, but putting down 10% to 20% can unlock better rates. For a £250,000 home, that’s a minimum of £12,500. The more you put down, the more affordable your mortgage is long-term.
What Is a Mortgage Deposit?
A mortgage deposit is the upfront amount you pay toward buying a property. The rest of the purchase price is covered by your mortgage lender. So, if you’re buying a home for £250,000 and you have a £25,000 deposit (10%), you’ll borrow the remaining £225,000.
Deposit Percentages at a Glance
| Deposit % | On £200,000 Property | Typical Mortgage Rate |
|---|---|---|
| 5% | £10,000 | 5.5% – 6.2% (higher risk) |
| 10% | £20,000 | 4.8% – 5.3% |
| 15% | £30,000 | 4.2% – 4.9% |
| 20%+ | £40,000+ | 3.8% – 4.4% (best rates) |
Top Tip: Even increasing your deposit from 5% to 10% can save you thousands over the life of your mortgage!
What’s the Minimum Deposit for a First-Time Buyer?
What a 5% or 10% deposit can unlock — your first home
As a first-time buyer in the UK in 2025, the minimum deposit is 5%, thanks to government-backed 95% LTV (loan-to-value) mortgage schemes. However, not all lenders offer these, and the criteria can be strict.
Example:
- Property price: £220,000
- 5% deposit: £11,000
- Mortgage required: £209,000
How to Know What Deposit You Need
It depends on:
- Your income
- Credit score
- Loan amount
- Lender’s risk appetite
- Property type (new build? flat?)
You can use our free tool here:
Mortgage Calculator
How Can I Boost My Deposit?
Saving even a little more can reduce your mortgage costs significantly
- Lifetime ISA (LISA): Save up to £4,000/year with a 25% government bonus.
- Family Gift: Parents can gift you a deposit – known as a gifted deposit.
- Co-buying: Partner up with someone else to combine deposits.
- Shared Ownership: Buy a share of a home and rent the rest, lower upfront cost.
Hidden Costs to Remember
Deposits are just the start. You’ll also need:
- Stamp Duty (none for first £425,000 as FTB)
- Solicitor fees (£1,000–£2,000)
- Mortgage broker fees (usually £0–£500)
- Survey & valuation costs (£300–£700)
Should I Wait to Save More?
Short answer: If you can, yes, a bigger deposit = lower rates.
But if property prices are rising fast, waiting might cost more in the long run. Our advisors can help you weigh up your unique situation.
Book a Free 15-Minute Mortgage Chat
Can I Get a Mortgage With No Deposit?
Technically, yes, 100% mortgages have returned in very limited cases, often with family guarantors or “Track Record” schemes (e.g., showing 12 months of rent payments). But these are rare and high-risk, so speak to a broker first.
Real Example: Laura’s Journey
“I saved 10% by combining my LISA and help from my parents. Oportfolio helped me secure a 90% mortgage with a great rate, I moved into my first home in March 2025!” – Laura, 28, London
Final Thoughts
Having a deposit is step one, but the right mortgage is what gets you the keys. Whether you’re at 5% or 25%, our team can help you figure out:
- How much you can borrow
- What lenders will say “yes”
- How to improve your approval odds
Ready to Find Out Your Mortgage Options?
Let us help you understand your deposit, affordability, and what’s possible in 2025. Call or message our expert mortgage advisors today for a free initial mortgage consultation. We are here to help.
