How much deposit do I need to buy a house?

The minimum is 5%

The absolute minimum deposit for a residential mortgage in the UK is 5% of the purchase price. So if you're buying a house for £200,000, you'd need at least £10,000.

Several lenders offer 95% LTV (loan-to-value) mortgages, and some — like Santander's My First Mortgage — even go to 98% LTV with just a £10,000 deposit regardless of the property price. So technically, you can get on the ladder with less than you might think.

But here's what nobody tells you

A 5% deposit can help you get started, but it does not automatically mean a lower rate. The interest rate available can change as your deposit increases, depending on the lender and your circumstances. Here is what that can look like in practice:

That's a difference of over £200 a month between a 5% and 20% deposit. Over a 5-year fixed term, that's £12,000. So while saving a bigger deposit takes longer, it genuinely saves you a significant amount of money.

The biggest jump is from 5% to 10%

If you're trying to decide how much to save, moving from 5% to 10% may change the products and rates available to you. The difference between deposit bands depends on the lender and your circumstances.

So if you're sitting at 5% and wondering whether to wait — even saving another few thousand to get closer to 10% can make a real difference to your monthly payments.

Where can your deposit come from?

Your deposit doesn't all have to come from your own savings. Here are the main sources lenders accept:

• Your own savings — the most straightforward option. Lenders like to see a track record of saving.
• Gifted deposit — money given to you by family (usually parents). The person gifting signs a declaration confirming it's a gift, not a loan. Most lenders accept this.
• Lifetime ISA — save up to £4,000 per year and the government adds 25% on top (up to £1,000 per year). You need to be 18-39 to open one, and the property must be under £450,000.
• Inheritance or windfall — lenders accept this but may ask for evidence of where the money came from.
• Selling an existing asset — for example, a car or investments. Again, you'll need a paper trail.

Don't forget the other costs

Your deposit isn't the only money you'll need. On top of the deposit, you should budget for:

• Solicitor fees — typically £1,000-£1,800
• Survey — £300-£600 depending on the type
• Stamp duty — first-time buyers pay nothing on the first £300,000 (until March 2025 threshold changes)
• Moving costs — removals, new furniture, utility connections

As a rough guide, budget an extra £3,000-£5,000 on top of your deposit for these costs. Our Cost of Moving Calculator can give you a more accurate figure based on your situation.

What if I haven't saved enough?

Don't assume you can't buy. There are more options than you might think:

• Shared Ownership — buy a share of a property (25-75%) with a smaller deposit on just your share. Available on some new builds in Cheshire.
• Family support schemes — some lenders offer products where family members can help without gifting cash outright (e.g., putting savings in a linked account).
• 98% LTV products — like Santander's My First Mortgage, which only requires a £10,000 deposit. There are catches, but it's a genuine option for some people.

The best way to find out what you need

Every situation is different. The amount of deposit you need depends on what you want to buy, where, and what kind of monthly payment you're comfortable with. A quick chat with me costs nothing, and I can tell you exactly where you stand and what your options are. No pressure, no commitment — just a clear answer.