You’ll usually need a deposit of at least 5% of a property’s price, but don’t put every penny you have into it. Keep enough back for all the other things you need to pay for when you buy a home, as well as an emergency fund (just in case). This guide covers how much to aim for, how a bigger deposit can lower your mortgage rate, and how to build one faster.
How much deposit do I need for a house?
Good news, you don't need to empty your savings account to buy a house. Most first time buyers aim for a 5–10% house deposit.
Some lenders offer low or even no deposit deals, and there are some handy government schemes to help you along the way too.
How much deposit do you actually need?
Your deposit is the money you put down in a lump sum. The mortgage covers the rest.
Most lenders ask for at least 5–10% of the home's price. Save more and you'll often get a better interest rate. That's because your loan-to-value (LTV) will be lower.
Loan-to-value explained
You’ll hear the term loan-to-value thrown around a lot when you’re buying your first home. Your LTV is your mortgage as a share (shown as a percentage) of the home's value. Here's loan to value explained with a £250,000 home:
5% deposit mortgage
The minimum deposit for a mortgage is usually 5%. A 5% deposit mortgage on a £250,000 home means you would need to pay £12,500 up front.
The mortgage guarantee scheme helps lenders offer 95% LTV mortgages on homes up to £600,000.
A few lenders offer even lower deposits, or none at all. These deals often come with conditions or things you need to prove, such as having a good record of paying rent.
A mortgage adviser can help you find the right fit.
Speak to a mortgage adviser today
Why a 10% deposit is a safer target
With a 10% deposit (that means a 90% LTV), you'll usually get more lenders to pick from. You'll often get a lower rate too. It also gives you a bit of breathing space if house prices go down.
If you can reach 10% comfortably, brilliant. If not yet, 5% is still a great way in.
When lenders want more
Some homes need a bigger deposit:
New builds: Lenders are sometimes a bit more careful here, especially with flats. A 10% deposit or more is common.
Buy-to-let: Lenders often ask for 25% deposit.
Second homes: These usually need more than a main home.
What's the average house deposit in the UK?
Halifax reported an average first time buyer deposit of £61,090 in 2024. That was around 20% of the price. Don't panic, though. That's an average, and lots of people buy with far less.
House prices are different across the UK. So, the deposit you need in one area can look very different in another.
The average deposit by UK nation
This table shows the implied average deposit across the UK, using the average first time buyer LTV data from UK Finance's 2026 Regional Mortgage Market Compendium.
Area | Average first time buyer LTV | Implied deposit |
England | 77.6% | 22.4% |
Wales | 82.2% | 17.8% |
Scotland | 83.2% | 16.8% |
Northern Ireland | 79.1% | 20.9% |
Greater London | 71.4% | 28.6% |
How London compares
In London, homes are very much like pints of beer; they cost a lot more! The UK House Price Index for June 2026 shows the average first time buyer in London paid £472,000. In England overall, the average was £245,000.
Here's what different deposits would cost in London:
Deposit | Amount |
5% | £23,600 |
10% | £47,200 |
15% | £70,800 |
20% | £94,400 |
How your deposit size affects your mortgage rate
Lenders usually set rates by LTV. The bigger your deposit, the lower your LTV. In many cases, that means a lower rate.
Typical LTV bands include:
95% LTV – 5% deposit
90% LTV – 10% deposit
85% LTV – 15% deposit
80% LTV – 20% deposit
75% LTV – 25% deposit
Dropping into a lower LTV can mean cheaper rates and lower monthly payments. You'll often get more deals to pick from too. Lenders will still look at your income, spending and credit history.
How much of your savings should you use?
Wondering how much savings you should use for a deposit? Here's an easy way to work it out. Start with your total savings. Take away your safety net. Take away your buying costs. What's left is your deposit.
Meet Sam. Sam has £30,000 saved, no debts and wants a £250,000 home.
Sam's essentials cost £1,800 a month. A three-month emergency fund is £5,400.
Buying costs (fees and legal work) come to around £4,000.
That leaves about £20,600 for the deposit. It's roughly 8% of the price.
Sam could buy now with a 92% LTV mortgage. Or Sam could save for a few more months and reach the 10% mark of £25,000. That could mean a cheaper interest rate.
If you’re paying off loans or credit cards, include those repayments in your essentials. They can also affect how much a lender will let you borrow.
Working out your own numbers
Emergency fund: It's the classic deposit vs emergency fund question. Aim to keep three to six months of you salary in savings for essential spending. If your job is steady, three might feel fine. If your income moves around, six might be better.
Income and repayments: A smaller deposit means a bigger mortgage. Check the monthly payment feels comfortable. Our affordability calculator can help you do the sums.
Location: In a pricey area, 5% is a lot of cash. In a cheaper one, 10% may be easier to save.
Lifestyle and timeline: Got a wedding, a baby or a job move on the horizon? Keep a bit more cash flexible for either a wedding singer or a bottle steriliser.
What to keep back: the costs beyond the deposit
The deposit isn't the only thing you need to think about. Set aside money for these:
Stamp duty for first time buyers: In England and Northern Ireland, you pay 0% stamp duty on the first £300,000 of a home costing up to £500,000. You pay 5% on the part between £300,001 and £500,000. So, on a £400,000 home, that's £5,000. Scotland and Wales have their own rules. Use our stamp duty calculator to work out your bill.
Solicitor and conveyancing fees: Legal fees, including searches, are usually around £2,000.
Survey and valuation: A homebuyer survey typically costs £400–£600.
Mortgage fees: Arrangement fees can be anything from zero to £1,000 or more.
Moving and furnishing: Removals, a sofa, curtains. It adds up fast, so plan ahead.
Our article on the hidden costs of buying a house has a full checklist.
How to build your deposit faster
The good news is there are plenty of ways to speed things up.
Lifetime ISA for a house deposit: Save up to £4,000 a year and the government adds a 25% bonus. That's up to £1,000 topped up every year. Just check the withdrawal rules first.
Gifted deposit: Family can give you money towards your deposit. Lenders usually want a letter saying it's a gift, not a loan.
Buying schemes: Shared ownership lets you buy a share of a home and pay rent on the rest. So you need a smaller deposit. The mortgage guarantee scheme helps you get a 95% LTV mortgage.
Is a bigger deposit always better?
Not always. A bigger deposit often means a lower rate and lower payments. That's great.
A comfortable deposit plus a healthy cushion beats a huge deposit and an empty account.
Speak to a mortgage adviser about your deposit
Your ideal deposit depends on your income, your plans and where you want to live. A mortgage adviser can look at your numbers with you. They'll show you what different deposits mean for your rate and help you work out what feels right.
Ready to chat? Our advisers are ready to call you back today. The first chat costs nothing and is totally free of obligation.