How much deposit do I need for a mortgage?
The 5% minimum, why a bigger deposit gets you a cheaper rate, what you need in pounds by house price, and how to save one faster.
For most homes you live in, the usual minimum deposit is 5% of the price, which means borrowing the other 95% as your mortgage. So a £250,000 home needs at least £12,500. You can often borrow with less, and sometimes nothing, but a bigger deposit, 10%, 15% or 25%, opens up more deals and a cheaper rate.
The short version
- The usual minimum is 5% of the price, a 95% mortgage.
- 10% to 25% gets you more deals and a lower rate; the cheapest rates tend to start around a 40% deposit.
- No-deposit and guarantor mortgages exist but are limited and pricier.
- Buy-to-let usually needs at least 25%. Every figure here is a rough guide, not financial advice or a mortgage offer.
How much you actually need
The minimum deposit for a normal residential mortgage is usually 5% of the purchase price. That gives you a 95% mortgage, meaning the loan covers 95% of the value and your deposit is the other 5%. Most lenders will want somewhere between 5% and 10% as a floor, and the more you can put down, the better the deal tends to be.
Your deposit decides your loan-to-value (LTV), the size of the loan as a percentage of the property's value. Lenders price mortgages in LTV bands, and a lower band usually means a cheaper rate. The table shows what each deposit means and what it would be in pounds on a £250,000 home.
| Deposit | Loan-to-value | What it usually means | On a £250,000 home |
|---|---|---|---|
| 5% | 95% LTV | The usual minimum, fewer deals, higher rates | £12,500 |
| 10% | 90% LTV | More deals, a clear step down in rate | £25,000 |
| 15% | 85% LTV | Good choice of deals | £37,500 |
| 25% | 75% LTV | Strong choice, very competitive rates | £62,500 |
| 40% | 60% LTV | Best rates and the widest choice | £100,000 |
You do not need to hit one of these exact percentages. They are simply where the rate tends to improve, so getting just over the 90% or 75% line can be worth a little extra saving.
What that is in pounds
The percentage is easy; what people really want is the cash figure. Take the price, work out the percentage, and that is your deposit. Here is the 5% minimum and a more comfortable 10% across a few common prices.
| Property price | 5% deposit | 10% deposit | 20% deposit |
|---|---|---|---|
| £150,000 | £7,500 | £15,000 | £30,000 |
| £200,000 | £10,000 | £20,000 | £40,000 |
| £250,000 | £12,500 | £25,000 | £50,000 |
| £300,000 | £15,000 | £30,000 | £60,000 |
For a sense of scale, the median first-time-buyer deposit in England was £36,500 in 2024-25, and most first-time buyers, 59% of them, put down less than 20%. So a deposit in the tens of thousands rather than the hundreds is the norm. To turn a target into a monthly saving, set the figure and a date in our savings goal calculator.
Why a bigger deposit is worth it
A bigger deposit lowers your loan-to-value, and a lower LTV usually means a lower interest rate, because the lender is risking less against the same property. The pricing works in bands rather than smoothly, so nudging your deposit just past the 90%, 85% or 75% LTV line can drop you into a cheaper band for what looks like a small change.
A lower rate feeds straight into a smaller monthly payment over the whole term, so the saving from a slightly bigger deposit can be far larger than the extra you put in. You can see exactly which band a given deposit lands in with our loan-to-value calculator, and the detail behind the bands is in our guide to loan-to-value explained. A bigger deposit also means borrowing less overall, which our mortgage affordability calculator factors in when working out the price you could reach.
Can you buy with no deposit?
Sometimes, but the options are limited. A small number of 100% mortgages, where you borrow the full price, are available in the UK. They usually need a guarantor, a family member who agrees to cover the loan if you cannot, or a relative locking a sum in a linked savings account as security. A few ask instead for a track record of paying rent and bills on time rather than a guarantor.
These deals come with fewer choices and higher rates than putting down even 5%, so a no-deposit mortgage is usually a route for people who genuinely cannot save a deposit rather than a first choice. At the 5% end, the government's permanent Mortgage Guarantee Scheme, in place since July 2025, backs lenders offering 91% to 95% mortgages, which is part of why low-deposit deals are widely available.
Deposits for buy-to-let
If you are buying to rent out rather than to live in, expect to need a bigger deposit. Buy-to-let lenders typically ask for at least 25%, a 75% loan-to-value, and some want more. On top of the deposit, the expected rent normally has to cover roughly 125% to 145% of the mortgage payment, which is how lenders check the let will pay for itself.
As with a residential mortgage, a bigger deposit gets you better rates, and the 25% figure is lender practice rather than a fixed rule, so it varies by lender and by your circumstances. If you are weighing up the numbers on a rental, our guide to what counts as a good rental yield covers the return side.
How to save a deposit faster
The quickest legitimate boost for a first home is a Lifetime ISA. The government adds a 25% bonus to what you pay in, up to £4,000 a year, so you can earn up to £1,000 a year for free. You have to be buying a first home costing £450,000 or less, and the account must have been open at least 12 months before you use it. Take the money out for anything else before age 60 and you pay a 25% charge, which can leave you with less than you put in.
The older Help to Buy ISA has been closed to new savers since November 2019, so a Lifetime ISA is the current option if you are starting from scratch. Outside those, regular saving into the best-paying account you can find does the heavy lifting; our guide to how savings grow explains how interest and time build the pot, and the savings goal calculator turns a deposit target into a monthly amount.
The costs on top of your deposit
Your deposit is not the only cash you need upfront. In England and Northern Ireland you may owe Stamp Duty Land Tax (SDLT), a separate tax on the purchase price. First-time buyers pay no SDLT up to £300,000 and 5% on the part between £300,000 and £500,000, with no relief above £500,000. Scotland uses its own Land and Buildings Transaction Tax and Wales uses Land Transaction Tax instead.
There are also legal fees, a mortgage valuation or survey, and often a mortgage product fee, so it is worth budgeting a bit beyond the deposit. Work out any stamp duty before you commit with our stamp duty calculator, and see the rules in full in our guide to how stamp duty works.
Common questions
- Is a 5% deposit enough for a mortgage?
- Yes, for most ordinary residential purchases 5% is the usual minimum. That means a 95% mortgage, where you borrow the other 95% of the price. There are fewer deals at that level and the rates are higher than for bigger deposits, but they are widely available, helped by the government's permanent Mortgage Guarantee Scheme. On a £250,000 home, 5% is £12,500.
- Is £10,000 enough for a house deposit?
- It can be. £10,000 is a 5% deposit on a £200,000 home, so it clears the usual minimum at that price. On a £100,000 home it is a more comfortable 10%. The smaller your deposit as a percentage, the higher the loan-to-value, the fewer deals you will see and the higher the rate, so £10,000 stretches further on a cheaper property.
- Is £20,000 enough for a house deposit?
- Yes, for a lot of the market. £20,000 is 10% of a £200,000 home or 5% of a £400,000 one. At 10% you reach the 90% loan-to-value band, which has more deals and better rates than the 95% band. The median first-time-buyer deposit in England was £36,500 in 2024-25, so £20,000 is below typical but still workable on a modestly priced home.
- What deposit do you need for a £300,000 house?
- At the 5% minimum you would need £15,000. A 10% deposit is £30,000, which reaches the 90% loan-to-value band and a better rate, and 20% is £60,000. Remember a deposit is not the only upfront cost: a first-time buyer pays no stamp duty up to £300,000 in England and Northern Ireland, but you will still have legal and survey fees on top.
- Can I get a mortgage with no deposit?
- It is possible but limited. A handful of 100% mortgages exist, usually needing a guarantor, a family member to lock up savings as security, or a track record of paying rent and bills on time. They have fewer options and tend to come with higher rates than putting down even 5%. For most buyers, saving a 5% deposit opens up far more choice.
- How much deposit do I need for a buy-to-let?
- Usually more than for a home you live in. Buy-to-let lenders typically want at least 25%, a 75% loan-to-value, and the expected rent normally has to cover around 125% to 145% of the mortgage payment. A bigger deposit again gets you better rates, and the minimum is lender practice rather than a fixed rule, so it varies.
About this article
Written by the calcd team. We build UK money calculators and explain the numbers behind them in plain English. The deposit and loan-to-value sums here are plain arithmetic, so there is no statutory rate to quote; we checked the minimum-deposit, no-deposit, buy-to-let and Mortgage Guarantee Scheme points against MoneyHelper and gov.uk, the Lifetime ISA figures against gov.uk (Lifetime ISA), the first-time-buyer stamp duty figures against gov.uk (SDLT), and the average-deposit figure against the English Housing Survey 2024-25. The figures are estimates to help you plan, not financial advice and not a mortgage offer. Your actual deposit, rate and the deals available depend on a lender assessing your circumstances. Last updated June 2026.