How Much Deposit Do You Need to Buy a House in the UK?
The deposit is one of the biggest barriers to buying a home in the UK and one of the most misunderstood. Many first-time buyers assume they need 20% saved before they can even start looking, when in reality the picture is much more nuanced.
Here's what you actually need to know about deposits in 2026.
The minimum deposit you need
Most UK lenders will accept a minimum deposit of 5% of the property's purchase price, meaning a 95% mortgage, so on a £250,000 property that's a £12,500 deposit. There are even some 100% mortgages available for first time buyers, although these are limited and typically come with strict eligibility criteria.
That said, the bigger your deposit the better the mortgage rate you'll be offered, because lenders see lower deposits as higher risk and charge higher interest rates to compensate. The most competitive rates are typically reserved for buyers with 25% deposits or more.
The deposit tiers explained
Lenders price mortgages in deposit tiers called loan to value (LTV) bands, and understanding where you sit can save you a significant amount over the life of your mortgage.
A 95% LTV mortgage (5% deposit) is the entry point for most first-time buyers, with higher rates and a more limited choice of lenders, but it remains the most common option for buyers without family help. Moving up to 90% LTV with a 10% deposit gives you access to better rates and a wider range of lenders, and 85% LTV with a 15% deposit opens up more competitive rates again. At 75% LTV (a 25% deposit), you start to see the most competitive headline rates from most lenders, and the very best rates tend to appear at 60% LTV or lower, although that's unrealistic for most first-time buyers.
The difference between tiers can be significant, and even moving from 5% to 10% can save you tens of thousands of pounds over the life of the mortgage.
The hidden costs beyond the deposit
The deposit is the headline number but it's not the only cash you need at completion. Stamp duty for buyers above the first-time buyer threshold can add thousands, conveyancing fees typically run between £1,000 and £2,500, and survey costs range from £400 for a RICS Level 1 to over £1,000 for a RICS Level 3. On top of that, mortgage arrangement fees can be £1,000 or more, and removal costs, basic furniture and emergency repairs can easily eat through another £2,000 to £5,000.
A safe rule of thumb is to add at least £5,000 to £10,000 on top of your deposit for these costs, depending on the property and your situation.
Help to save for a deposit
If you're saving for a deposit, there are a few schemes worth knowing about. The Lifetime ISA (LISA) lets you save up to £4,000 a year and the government adds a 25% bonus of up to £1,000 per year, which you can put towards a first home up to £450,000.
Some employers also offer help with deposit savings through workplace schemes, and shared ownership remains an option for buyers who can't afford the full deposit on the property they want. We covered shared ownership in detail in our guide to shared ownership.
Family or friend contributions
Sometimes first-time buyers receive help from family or friends, and this can take the form of a gifted deposit, a loan, or a guarantor arrangement. If a family member is gifting money, your solicitor will need a written letter from them confirming it's a gift rather than a loan and that they have no claim on the property, which is required by your mortgage lender as part of anti-money laundering checks.
How much should you actually save?
The honest answer is that it depends on your situation, the area you're buying in, and how quickly you want to move. According to the UK House Price Index, the average UK house price sits at around £268,000 as of early 2026, while the average price for a first-time buyer is around £226,000. Prices vary significantly by region, with the Northeast averaging £139,000 for first time buyers compared to £472,000 in London.
For a typical first-time buyer purchase at £226,000, a 10% deposit would be £22,600, with a 5% deposit at £11,300. On top of that you'll need to budget for fees and other costs, typically £3,000 to £5,000 for conveyancing, surveys and mortgage arrangement, plus moving costs.
Stamp duty for first time buyers is currently zero on properties up to £300,000, so most first-time buyers won't pay any stamp duty at all. If you're not a first-time buyer or you're buying a property over £300,000, the rules are different and we covered the full picture in our guide to stamp duty.
If you're at the very start of your saving journey, focus on building an emergency fund alongside your deposit savings, because completing on a property and immediately running out of money is a stressful and avoidable situation.
The full checklist
The Home Truths Guide includes 100+ essential questions to ask at every stage of buying a home in the UK.
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