How Much Deposit Do I Need for a House UK? | Calclens

How much do I need?

How much deposit do I need to buy a house?

The short answer is 5% to 10% of the price — but the right amount depends on the rate you want, the help schemes you use, and the cash costs beyond the deposit itself.

The short answer

Most UK lenders require a deposit of at least 5% of the property price, so on a £250,000 home that’s £12,500. A 10% deposit (£25,000) unlocks noticeably better mortgage rates, and the sharpest rates sit at 25% and above. On top of the deposit you’ll need several thousand pounds for stamp duty, conveyancing, a survey and fees.

Here’s the thing most first-time buyers get told late: the deposit isn’t just the ticket through the door. It quietly sets the price of everything that follows.

The part you pay upfront, against the price of the home, gives your loan-to-value — LTV. Put down 10% on a £250,000 place and you’re borrowing 90% of it. That single percentage does a lot of work: it decides your interest rate, how many lenders will touch your application, and what you hand over every month for the next 25 years.

So yes, you can buy with 5%. The government’s mortgage guarantee scheme keeps 95% mortgages widely available, and plenty of people use them. But the real question isn’t “what’s the minimum?” It’s “where does saving a bit more stop being worth the wait?” That’s what the rest of this answers.

How your deposit affects your mortgage rate

Lenders price risk. The more you put down, the less they charge — and they do it in steps, not a smooth slope.

Those steps are LTV bands, and the ones that matter sit at 90%, 85%, 80% and 75% loan-to-value — a 10%, 15%, 20% or 25% deposit. Put down 5% and you’re in the priciest bracket lenders offer. Cross into the next band down and the rate drops; cross another and it drops again. The sharpest deals live at 75% LTV and below.

£100–200/mo Rough saving on a £250,000 home, going from a 5% to a 15% deposit (95% → 85% LTV). Over five years, that’s thousands.

That’s not loose change. A 5% deposit typically costs you 1 to 1.5 percentage points more than the best rates on the board — every month, for years.

The quirk worth knowing: it’s the threshold that counts, not the exact pound. Nudging from 86% to 85% LTV can tip you into a cheaper band; saving an extra £2,000 that leaves you stuck at 86% does nothing for your rate. If you’re close to a line, it’s worth reaching it.

And there’s a ceiling on all this. Past 75% LTV the savings flatten right out — so chasing a 40% deposit rarely beats simply buying sooner. For most buyers the smart target is the next band down, not the biggest pot they can scrape together.

Help schemes that reduce the deposit you need

Short of the deposit you want? A few routes can shrink the hurdle. A Lifetime ISA (LISA) gives a 25% government bonus on up to £4,000 saved a year — a maximum £1,000 bonus annually — and the whole amount can go toward a first home costing £450,000 or less, provided the account has been open at least 12 months. A couple both paying in the maximum can build a substantial bonus over a few years.

Shared ownership lets you buy a share of a home (often 25–75%) and pay rent on the rest, so the deposit is calculated only on the share you buy — far less cash upfront. Guarantor and family deposit mortgages let a parent’s savings or property support your application, reducing or replacing the deposit you’d otherwise need. Each scheme has its own eligibility rules and trade-offs, so they’re worth comparing rather than assuming one fits.

What changes the deposit you need?

The headline is 5–10%, but four things move your real number up or down.

%The rate you want

A bigger deposit means a lower LTV, which unlocks cheaper rates. The steps down at 90%, 85%, 80% and 75% LTV are where the savings appear.

£The property price

5% of £180,000 is £9,000; 5% of £400,000 is £20,000. The percentage is fixed, so the cash figure scales with the price you target.

+Help schemes

A Lifetime ISA adds a 25% bonus to deposit savings; shared ownership, guarantor and family-deposit options can lower the cash you need.

!The extra cash costs

Stamp duty, conveyancing, surveys and removals all land at completion. Budget several thousand pounds beyond the deposit so the purchase doesn’t stall.

Deposit needed at different prices

A ready reckoner for 5%, 10% and 15% deposits across common UK property prices.

Property price	5% deposit	10% deposit	15% deposit
£150,000	£7,500	£15,000	£22,500
£200,000	£10,000	£20,000	£30,000
£250,000	£12,500	£25,000	£37,500
£300,000	£15,000	£30,000	£45,000
£400,000	£20,000	£40,000	£60,000

These are deposit figures only. The typical first-time buyer property outside London is around £227,000, so a 10% deposit on an average first home is roughly £22,700. Remember the cash costs on top — covered next. To see what a given deposit means for your monthly payment, use the mortgage repayment calculator.

A first-time buyer’s deposit, worked through

One realistic example, to show how the deposit and the costs around it fit together.

Worked example Priya · first-time buyer · targeting a £250,000 home

Minimum vs target. The 5% minimum is £12,500, but Priya aims for £25,000 (10%) to drop from 95% to 90% LTV and a better rate.
The LISA boost. She’s saved £16,000 in a Lifetime ISA over four years; the 25% bonus has added £4,000, taking it to £20,000 toward the deposit.
Topping up. She adds £5,000 from regular savings to reach the £25,000 target — a clean 10% deposit.
The cash costs. On a £250,000 home she pays £0 stamp duty (under £300k, first-time buyer), but budgets £2,500 for conveyancing, survey and fees.
The buffer. She keeps a separate emergency fund untouched, so completion costs don’t leave her with nothing in reserve.

The takeaway: Priya’s “deposit” was really three things — the LISA pot, the bonus, and a top-up — plus a few thousand in completion costs she planned for separately. Aiming for 10% rather than the 5% minimum cost more upfront but unlocked a cheaper rate she’ll benefit from for years.

Work out your number

See what you can actually borrow

Your deposit sets your price ceiling alongside what a lender will offer. Check both with the affordability calculator.

Affordability Calculator →

Deposit questions, answered

Can I buy a house with a 5% deposit?

Yes — many lenders offer 95% mortgages, meaning a 5% deposit, helped by the government’s mortgage guarantee scheme. On a £250,000 home that’s £12,500. The trade-off is a higher interest rate than you’d get with a larger deposit, typically around 1 to 1.5 percentage points more, because the lender takes on more risk. You’ll also still need cash for stamp duty, conveyancing and fees on top.

How much deposit do I need for a £200,000 house?

At the 5% minimum, a £200,000 home needs a £10,000 deposit; at 10% it’s £20,000, and at 15% it’s £30,000. A larger deposit lowers your loan-to-value and unlocks cheaper rates, so where you can, stretching to the next band down often pays off over the life of the mortgage. Budget several thousand pounds more for stamp duty, legal fees and a survey.

Is it better to save a bigger deposit or buy sooner?

It depends on rates and how fast prices and rents are moving. A bigger deposit unlocks cheaper rates and lower monthly payments, but waiting longer means more rent paid and possible price rises. The sharpest rate improvements come up to 75% LTV (a 25% deposit); beyond that the gains are marginal. Many buyers aim for 10–15% as a balance between a decent rate and getting on the ladder.

Does a Lifetime ISA count toward my deposit?

Yes. A Lifetime ISA adds a 25% government bonus to what you save — up to £1,000 a year on £4,000 paid in — and the whole amount can go toward your deposit, provided the home costs £450,000 or less and the account has been open at least 12 months. Withdrawing for anything other than a first home or retirement triggers a charge, so check it fits your plans.

What other costs do I need besides the deposit?

Beyond the deposit, budget for stamp duty (nothing for first-time buyers up to £300,000, then 5% to £500,000), conveyancing, a survey, a possible mortgage arrangement fee, a valuation fee and removals. Together these can add several thousand pounds, all payable from cash around completion rather than from the mortgage. Keep a buffer so these don’t leave you with nothing in reserve.

Can I get a mortgage with no deposit?

A small number of 100% mortgages exist, often requiring a family member to provide security or savings as a guarantee. They’re the exception, tend to carry higher rates, and have stricter criteria. For most buyers, a 5% deposit is the realistic minimum, with 10% or more opening up far better rates and a wider choice of lenders.

Where can my deposit come from?

Lenders accept deposits from personal savings, ISAs and cash holdings, and from a gifted deposit — usually from a close family member, with a letter confirming it’s a gift, not a loan. Inheritance and proceeds from selling another property also count. Lenders will ask about the source of funds during the application as part of anti-money-laundering checks, so keep records of where the money came from.

Related guides & tools

How this guide is built

Deposit percentages, LTV bands, the Lifetime ISA bonus and stamp duty thresholds follow current lender practice and GOV.UK guidance. Figures are illustrative starting points; the rate you’re offered depends on your circumstances, the lender and the wider market.

Definitions and sources: methodology · sources.

Not financial advice. This guide is for general information and links to calculators that produce estimates. Deposit requirements and rates vary by lender and circumstances — confirm figures with a qualified mortgage adviser before acting.