Answers · UK 2025/26

How much deposit do I need for a mortgage in the UK?

Most UK mortgages require a minimum 5-10% deposit, though some 100% or guarantor mortgages exist for specific circumstances. A larger deposit (15%, 25% or more) typically unlocks significantly better interest rates, since lenders offer their best deals at lower loan-to-value ratios, making saving beyond the bare minimum often worthwhile if you can manage it.

Last updated: 2 July 2026Last reviewed: 2 July 2026How we verify

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The deposit you need depends on both the minimum lenders require and the strategic question of how much you should aim to save to access better mortgage rates. **Minimum deposit requirements** Most mainstream mortgage lenders require at least a 5% deposit (95% loan-to-value), though the range and availability of 95% LTV products can fluctuate with market conditions -- some specialist products (guarantor mortgages, or schemes for first-time buyers) can go to 100% LTV in limited circumstances, but these are less common and often carry specific conditions or higher rates. **Why loan-to-value bands matter for rates** Mortgage lenders price their products in loan-to-value (LTV) bands -- typically 95%, 90%, 85%, 80%, 75%, 60% -- with meaningfully better interest rates available as your deposit increases and you move into a lower LTV band, since lower LTV represents lower risk to the lender. **Typical deposit-to-rate improvement** While exact figures vary with market conditions, moving from a 95% LTV mortgage to a 90% LTV mortgage (10% deposit) often meaningfully reduces your interest rate, and moving to 85% or below can reduce it further still -- the improvement tends to diminish somewhat once you are already below 75% LTV, where rates are typically already close to the lender's best available. **Worked example** On a £250,000 property: a 5% deposit is £12,500 (borrowing £237,500 at 95% LTV); a 10% deposit is £25,000 (borrowing £225,000 at 90% LTV, likely at a meaningfully better rate); a 25% deposit is £62,500 (borrowing £187,500 at 75% LTV, typically among the best available rates). **Additional costs beyond the deposit** Remember your deposit is separate from other purchase costs you will also need funds for: Stamp Duty Land Tax (or the equivalent LBTT/LTT), solicitor and conveyancing fees, survey costs, mortgage arrangement fees, and moving costs -- budgeting only for the deposit itself can leave you short when these additional costs arrive. **First-time buyer considerations** First-time buyers benefit from SDLT relief (no SDLT up to £300,000, then 5% on the portion between £300,000 and £500,000) which reduces the total cash needed at completion compared with buying as a home-mover -- but the deposit percentage requirements are generally the same regardless of first-time buyer status. **Practical tip** Use the Mortgage Affordability calculator to see how different deposit sizes affect both your monthly repayments and the interest rate band you would likely qualify for, since even an extra 5% deposit can sometimes save more in interest over the mortgage term than it takes to save that additional amount.