How Much Deposit Do I Need for a Mortgage in the UK in 2026?
This week’s mortgage FAQ answers one of the most common questions from buyers: How much deposit do I need for a mortgage in the UK?
Whether you’re a first-time buyer or moving home, your deposit plays a major role in what you can buy, which lenders are available, and the interest rates you’re offered. This is one of the most common questions for buyers searching how much deposit is needed for a mortgage in the UK, particularly for first-time buyers.
If you’re unsure how much deposit you need, we can usually give you a clear answer quickly based on real lender criteria.
Quick answer
In the UK, most buyers need a deposit of at least 5% of the property value, although a 10–20% deposit typically gives access to better rates and more lenders. The size of your deposit directly affects your mortgage rate, borrowing options, and approval chances. The larger your deposit, the more favourable your mortgage options become.
What is a mortgage deposit?
A mortgage deposit is the upfront cash contribution you put towards buying a property. The rest is funded by your mortgage lender.
For example:
- Property price: £300,000
- 10% deposit: £30,000
- Mortgage: £270,000
Minimum deposit requirements in the UK
Most lenders have minimum deposit thresholds based on loan-to-value (LTV).
Typical ranges:
- 95% LTV requires 5% deposit
- 90% LTV requires 10% deposit
- 80–85% LTV requires 15–20% deposit
- 75% LTV or lower requires 25%+ deposit
Lower LTV means lower risk for lenders, meaning better mortgage rates, generally.
How your deposit affects your mortgage
Your deposit impacts:
- Interest rates
- Monthly repayments
- Lender choice
- Affordability assessments
For example
- A 5% deposit may result in higher monthly payments
- A 20% deposit often unlocks significantly better rates
Can you get a mortgage with a 5% deposit?
Yes, 5% deposit mortgages are available in the UK. However:
- Fewer lenders offer them
- Affordability checks are stricter
- Interest rates are typically higher
These are commonly used by first-time buyers.
What Our Clients Say About First-Time Buyer Mortgages
Is it better to save a larger deposit?
In many cases, yes. A larger deposit can:
- Reduce your monthly repayments
- Improve your chances of approval
- Give access to more competitive lenders
- Lower your overall cost of borrowing
What counts as a deposit?
Lenders accept deposits from:
- Personal savings
- Gifted deposits (usually from family)
- Sale of an existing property
- Bonuses or inheritance
Lenders will require proof of the source of funds.
How much deposit do you need in London?
In higher-value areas like London, property prices are higher meaning that deposits are typically larger. Even a 10% deposit on a £600,000 property = £60,000. This is why many London buyers focus on affordability and lender choice alongside deposit size.
Oportfolio insight
Across London and the South East, we often see buyers focus heavily on deposit size. However, in many cases, choosing the right lender can be just as important as increasing your deposit.
Different lenders:
- Assess affordability differently
- Offer different borrowing limits
- Accept different income types
What’s the best deposit strategy?
There’s no single “perfect” deposit amount. A practical approach is:
- Understand how much you can borrow
- Compare lender options at different deposit levels
- Balance deposit size with affordability
Need help understanding your deposit options?
If you’re unsure how much deposit you need or how it affects your mortgage, we can help. We’ll assess:
- Your income
- Your deposit
- Your borrowing options
Book a quick affordability review with Oportfolio Mortgages and we’ll show you what’s realistic.
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