Answers · UK 2025/26

How much deposit do I need for a GBP 250,000 house as a first-time buyer?

Most lenders want at least 5% (GBP 12,500) for a GBP 250,000 home, but 10% (GBP 25,000) unlocks far better rates. A 5% deposit needs a GBP 237,500 mortgage at 95% LTV; 10% drops you to a GBP 225,000 loan at 90% LTV.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

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Deposit size is set by loan-to-value (LTV), the percentage of the price you borrow. On a GBP 250,000 home: a 5% deposit is GBP 12,500 (95% LTV, GBP 237,500 loan); 10% is GBP 25,000 (90% LTV); 15% is GBP 37,500 (85% LTV); and 25% is GBP 62,500 (75% LTV), which typically gets the sharpest rates. Lenders price risk in 5% LTV bands, so nudging from 90% to 85% can cut your interest rate noticeably. Worked example: at GBP 237,500 over 25 years at 5.5%, the monthly payment is roughly GBP 1,459; at GBP 225,000 and 5.0% it falls to about GBP 1,315 - a smaller loan and a better rate compound the saving. Remember the deposit is not your only upfront cost. As a first-time buyer in England or Northern Ireland buying at GBP 250,000 you pay no Stamp Duty (0% to GBP 300,000 under first-time buyer relief), but budget for a survey (GBP 300 to GBP 1,000), conveyancing (GBP 1,000 to GBP 2,000) and mortgage product fees. A Lifetime ISA can boost your deposit with a 25% government bonus on up to GBP 4,000 a year, usable on a first home priced up to GBP 450,000. Use the mortgage affordability calculator to see what monthly payment fits your income, and the mortgage calculator to compare LTV bands. Check current help and eligibility on gov.uk.