How Much Deposit Do I Need for a House in the UK?

How LTV is calculated

The minimum deposit is usually 5%

Most UK high-street lenders offer mortgages from 95% LTV, which means a 5% deposit. On a £200,000 home, that is £10,000. Some lenders and schemes go higher — including 100% LTV products and government-backed schemes — but they are less common and usually carry higher rates.

Your deposit is the cash you put down up front; the mortgage covers the rest. It also sets your loan-to-value (LTV) — the mortgage as a share of the property’s value. The two are two sides of the same number: a 10% deposit is a 90% LTV.

What different deposit sizes mean on a £300,000 home

Deposit	Mortgage	LTV	Monthly payment (5% illustrative)
£15,000 (5%)	£285,000	95%	£1,666
£30,000 (10%)	£270,000	90%	£1,578
£45,000 (15%)	£255,000	85%	£1,491
£60,000 (20%)	£240,000	80%	£1,403
£120,000 (40%)	£180,000	60%	£1,052

Illustrative only — 5% p.a. constant, 25-year repayment term. Actual rates by LTV tier change frequently and vary by lender.

Two effects are at work: a bigger deposit means a smaller loan, and it usually unlocks a cheaper rate tier. Both push your payment down. Going from a 5% to a 20% deposit on this example cuts the monthly payment by about £263 — roughly £79,000 less over a 25-year term before you even account for the better rate.

How to save a deposit faster

Use a Lifetime ISA — save up to £4,000 a year and get a 25% government bonus (max £1,000 a year) toward a first home under £450,000. See the LISA bonus guide.
High-interest savings — a regular saver or high-interest current account can add hundreds of pounds a year on a growing balance.
Cut the purchase timeline — every extra £100 a month saved shortens the journey to a 10% or 20% deposit.

Remember you will also need cash for Stamp Duty (first-time buyers in England get relief up to £425,000), solicitor fees, surveys and moving costs — the deposit is not the only up-front cost.

Government help for first-time buyers

The Lifetime ISA is the main savings vehicle for first-time buyers: a 25% bonus on up to £4,000 a year, usable on a home up to £450,000. Some lenders also offer 95% LTV mortgages aimed at first-time buyers, and shared ownership lets you buy a share of a property with a smaller deposit. Scheme details change — check the latest official guidance before relying on any of them.

How much deposit do I need for different house prices?

Here is the cash needed for common deposit percentages across typical UK price points:

Property price	5%	10%	15%	20%
£200,000	£10,000	£20,000	£30,000	£40,000
£250,000	£12,500	£25,000	£37,500	£50,000
£300,000	£15,000	£30,000	£45,000	£60,000
£400,000	£20,000	£40,000	£60,000	£80,000

Deposit = price × percentage. LTV = 100% − deposit percentage.

Frequently asked questions

Can I buy a house with a 5% deposit?

Yes. 95% LTV mortgages are widely available in the UK. They carry higher rates than larger-deposit deals, but for many people a 5% deposit is the practical route onto the ladder — and you can often remortgage into a better rate once your LTV falls.

Is a 10% deposit enough to buy a house?

Usually yes. A 10% deposit (90% LTV) is the most common target for first-time buyers: it is achievable for many savers and sits below the most expensive 95% tier. Rates at 90% LTV are still higher than at 80% or 75%.

Do I need a 20% deposit for the best rates?

Not necessarily — rates typically improve at each band (90%, 85%, 80%, 75%), but the biggest jumps are usually below 80%. A 20% deposit is a strong position, but even 15% or 10% can access competitive deals.

Can I use gifted money for a deposit?

Yes. Gifts from family are a common source of deposits. Lenders will usually want a signed gift letter confirming the money is not a loan and the giver has no claim on the property.