The deposit is usually the biggest hurdle to buying a first home, and one of the most common questions is simply: how much do I actually need? The answer affects what you can buy, the rates you get and how long you must save. This guide explains how much deposit you need to buy your first home.
The minimum deposit
Most lenders require a minimum deposit of 5% of the property's price. On a £200,000 home that is £10,000, and on a £250,000 home it is £12,500. A 5% deposit means a 95% loan-to-value mortgage, where you borrow 95% of the price. While 5% is the usual minimum for a home you will live in, putting down more, if you can, brings real advantages, as explained below.
What loan-to-value means
Loan-to-value, or LTV, is the size of your mortgage as a percentage of the property's value. A 5% deposit gives 95% LTV; a 10% deposit gives 90% LTV; a 25% deposit gives 75% LTV. LTV matters because lenders price their deals in bands, offering lower interest rates at lower LTVs. Crossing a threshold, such as from 95% to 90%, can noticeably reduce your rate, as our guide to how mortgages work explains.
Why a bigger deposit helps
A bigger deposit helps in several ways. It reduces the amount you borrow, so your monthly payments are lower and you pay less interest overall. It also unlocks lower interest rates, because lenders see a lower-LTV borrower as less risky. And it widens your choice of lenders and deals. Even saving an extra 5% to cross an LTV threshold can save a meaningful amount over the life of the mortgage, so it is often worth the wait.
How much to aim for
While 5% is the minimum, many first-time buyers aim for 10% to 20% if they can, to get better rates and more choice. The right target balances getting on the ladder sooner against the savings a larger deposit brings. If you are close to a threshold like 90% or 85% LTV, saving a little longer to cross it can be worthwhile. But there is also value in buying sooner rather than waiting indefinitely, as our guide to what you can borrow shows.
The deposit is not the only upfront cost
Remember that the deposit is not the only money you need upfront. There are other costs, including possibly stamp duty, solicitor's fees, a valuation or survey, and moving costs. Budgeting for these alongside your deposit avoids a nasty surprise, as our guide to the true cost of buying your first home explains. It is wise to keep some money aside rather than spending every penny on the deposit itself.
How a 95% mortgage works
A 95% mortgage lets you buy with just a 5% deposit, and these deals are widely available in 2026, helped by schemes that support low-deposit lending. The trade-off is a higher interest rate than lower-LTV deals, and less of a buffer if house prices fall. They are a valuable route onto the ladder for those who cannot save more, as our guide to 95% and low-deposit mortgages explains in detail.
Help with your deposit
There are ways to boost your deposit. A Lifetime ISA adds a 25% government bonus to your savings towards a first home, and family can help with a gifted deposit. These can shorten the time it takes to save or increase how much you can put down. Our guides to the Lifetime ISA and gifted deposits explain how each works and the rules that apply.
Saving your deposit
For most first-time buyers, saving the deposit takes time and discipline. Setting a target, budgeting, using the right savings accounts and cutting costs all help you get there faster, as our guide to how to save a deposit faster explains. The sooner you start and the more focused you are, the quicker you reach the deposit you need to buy the home you want.
Deposit examples at different prices
It helps to see the numbers. On a £150,000 home, a 5% deposit is £7,500 and a 10% deposit is £15,000. On a £250,000 home, 5% is £12,500 and 10% is £25,000. On a £350,000 home, 5% is £17,500 and 10% is £35,000. Seeing the deposit for the price range you are targeting makes your saving goal concrete and helps you decide what is realistic.
Your deposit and your monthly payments
The size of your deposit affects your monthly payments in two ways: it reduces how much you borrow, and it can lower your interest rate by reducing the loan-to-value. Both mean smaller monthly payments. So a bigger deposit not only gets you a better deal but also makes the home cheaper to run each month, which can matter as much as the headline price when you are budgeting for life as a homeowner.
Where your deposit can come from
Your deposit can come from your own savings, a Lifetime ISA with its government bonus, a gift from family, or a combination. Lenders want to know the source of your deposit, partly for anti-money-laundering checks, so be ready to show where it came from. Gifted deposits are common and accepted by most lenders, usually with a letter confirming the money is a gift, as our guide to gifted deposits explains.
Deposits for new-build homes
If you buy a new-build home, the deposit requirements can sometimes differ, and certain schemes are designed to help buyers of new-builds with smaller deposits. New-build properties can also be valued differently by lenders, so it is worth understanding the specifics before committing. Checking what deposit a particular new-build purchase requires, and what schemes apply, ensures you are not caught out by rules that differ from buying an existing home.
Keeping your deposit safe before completion
Once you have saved your deposit, keep it safe and accessible for when it is needed, typically at exchange of contracts. Money you will need within months should be in a secure, accessible savings account rather than anything that could fall in value. Be alert to fraud around completion, as conveyancing scams target buyers' deposits, so always verify your solicitor's bank details carefully before transferring any large sum.
What if you cannot save much?
If saving a large deposit is hard, the 5% minimum, combined with schemes and any family help, may still let you buy sooner than you think, as our guide to 95% and low-deposit mortgages explains. The trade-off is a higher rate and less of a buffer against price falls, so weigh buying now with a small deposit against waiting to save more. For many, getting on the ladder sooner is the right call.
In short
You usually need a minimum deposit of 5% of the property's price to buy your first home, giving a 95% mortgage. A bigger deposit reduces your borrowing, lowers your interest rate and widens your choice, so many aim for 10% to 20% if they can. Budget for the other upfront costs too, and use help like the Lifetime ISA and gifted deposits. Balance saving more against getting on the ladder.
Where to get help and next steps
Read our guides to 95% and low-deposit mortgages, how to save a deposit faster, and first-time buyer mortgages explained. This is general information, not mortgage or financial advice.