How Much Deposit Do You Need for a Mortgage?

This guide provides general information and is not a substitute for personalised mortgage, tax or legal advice.

Written and reviewed by the Highhouse Money mortgage team · Last reviewed: 25 August 2026

Your deposit is the amount you put towards a property upfront, with the mortgage covering the rest. It is usually the single biggest factor in deciding not just whether you can buy, but which rates and lenders are open to you — because deposit size determines your loan-to-value, and loan-to-value drives pricing.

This guide covers how much deposit is typically needed, where deposit funds can legitimately come from, how gifted deposits work, and why even a modest increase in deposit can sometimes make a meaningful difference to the rate on offer.

Getting your deposit ready

Work out your target deposit as a percentage of likely purchase price
Keep deposit savings in an account you can evidence with statements
If receiving a gift, ask the giver about the gift letter your lender will need
Avoid large, unexplained cash deposits into your account before applying
Check whether any current scheme you might be eligible for is still open
Factor in additional costs on top of the deposit — fees, survey, legal costs, stamp duty
Speak to an advisor about how your deposit size affects available rates

How much deposit do you actually need?

There is no single fixed figure, because minimum deposit requirements depend on the lender, the specific mortgage product, the type of property and sometimes your personal circumstances. As a general guide, 5% of the purchase price is a commonly available minimum for many residential mortgages, but a larger deposit — 10%, 15% or more — usually opens up a wider choice of products and better rates.

Deposit	Approx. loan-to-value	What it typically means
5%	95% LTV	Fewer lenders and products; rates usually at the higher end
10%	90% LTV	Wider choice; rates often noticeably better than 95% LTV
15–25%	75–85% LTV	Access to a broad range of mainstream deals
25%+	75% LTV or below	Typically the most competitive rate bands

Illustrative bands only — actual rates and availability depend on the lender, product and your circumstances at the time.

Why loan-to-value drives the rates you're offered

Lenders price mortgages partly according to risk, and a lower loan-to-value generally represents lower risk to the lender because there is more equity cushioning against a fall in property values. This is why rate tables are typically split into LTV bands, and why crossing from one band into the next — say from 90% to 85% — can unlock a meaningfully different rate.

It is worth checking where the nearest LTV threshold sits relative to your likely deposit. Sometimes saving a little more, or negotiating a slightly lower purchase price, is enough to move into a better band.

Where deposit funds can come from

Personal savings built up over time
A gifted deposit from a family member (and sometimes others, depending on the lender)
Proceeds from selling a property you already own
Inheritance
Funds from a recognised savings scheme

Whatever the source, lenders will usually want evidence of where the money came from as part of standard anti-money-laundering checks. Large or unusual transactions into your account shortly before applying can raise questions, so it helps to keep a clear paper trail.

Gifted deposits

A gifted deposit is money given towards your purchase, usually by a parent or close family member, with no expectation of repayment and no stake in the property. Lenders that accept gifted deposits typically require a signed gift letter confirming these points, and some lenders restrict who is allowed to gift funds.

Rules on gifted deposits vary between lenders — check the specific requirements before assuming a gift will be accepted in the way you expect, and allow time to get the paperwork in order.

Deposit is not the only cost to plan for

Buyers sometimes focus on the deposit and forget the other costs that arise around a purchase — including mortgage arrangement fees, valuation fees, legal costs, survey costs and, where applicable, stamp duty. It is worth budgeting for these separately from your deposit so you are not caught short at completion.

Schemes and alternative routes

From time to time, schemes exist to help buyers with smaller deposits, such as guarantor mortgages, where a family member offers additional security, or shared ownership, where you buy a share of a property and pay rent on the rest. Eligibility rules and availability change, so check the current position on GOV.UK and get advice on whether you meet the criteria.

What lenders may assess

Deposit amount as a percentage of the purchase price or valuation
Source of deposit funds and supporting evidence
Whether any part of the deposit is gifted, and by whom
Property type and whether it affects minimum deposit requirements
Your overall affordability alongside the loan-to-value

Every lender sets its own criteria, which change regularly. The points above are common themes, not a guarantee of how any individual lender will treat an application.

Frequently asked questions

What is the minimum deposit for a mortgage?

Minimum deposit requirements vary between lenders and products, but 5% of the property's value is a commonly seen minimum for many residential mortgages, with some schemes occasionally allowing less and many lenders requiring more, particularly for certain property types or borrower circumstances. The deposit you need also depends on the lender's criteria and the specific product.

Does a bigger deposit get me a better rate?

Generally, yes — a larger deposit usually means a lower loan-to-value, and lenders typically offer more competitive rates at lower loan-to-value bands because their risk is reduced. The exact pricing differs between lenders and changes over time, so the improvement at each deposit threshold should be checked rather than assumed.

Can I use a gifted deposit from family?

Many lenders accept gifted deposits from family members, and some accept gifts from a wider range of people, but each lender has its own rules about who can gift funds and what paperwork is required — typically a signed gift letter confirming the money does not need to be repaid and the giver has no stake in the property.

What counts as an acceptable source of deposit funds?

Common accepted sources include personal savings, gifted deposits, proceeds from selling another property, inheritance, and certain government schemes. Lenders will usually ask for evidence of where the funds came from, partly to satisfy anti-money-laundering checks, so keeping records of large transfers into your account is worthwhile.

What is loan-to-value and why does it matter?

Loan-to-value (LTV) is the mortgage amount expressed as a percentage of the property's value — a £180,000 mortgage on a £200,000 property is 90% LTV. Lenders group rates into LTV bands, and moving into a lower band, for example from 90% to 85%, can unlock a better rate, which is why even a slightly larger deposit can be worth arranging.

Can I buy with no deposit at all?

Genuinely deposit-free residential mortgages are unusual and, where they exist, tend to come with specific conditions such as a guarantor or family member providing security. Most buyers should plan on the basis that some deposit will be required, and should get advice on any scheme claiming to remove this requirement entirely.

Are there schemes to help with a smaller deposit?

Various schemes exist from time to time aimed at helping buyers with smaller deposits, including guarantor mortgages and shared ownership. Availability and rules change, so check GOV.UK and MoneyHelper for the current position and speak to an advisor about whether you qualify.

Will saving for longer to get a bigger deposit always help?

Not necessarily — it depends on your circumstances, how quickly property prices and interest rates are moving, and how close you are to a better loan-to-value band. This is a personal decision that depends on your situation, and an advisor can help you weigh the trade-offs rather than assuming more time saving is always the right approach.

Sources and further reading

Where figures or rules can change, the position described is correct at the time of writing (25 August 2026) — always check the linked authoritative source for the latest position.

How much can I borrow?

See how your deposit and income together shape your borrowing power.

Agreement in principle explained

The next step once you know your deposit and rough budget.

First-time buyer mortgage checklist

What else you'll need before you apply.

Stamp duty for first-time buyers

Budget for costs beyond your deposit.

Residential mortgages

Whole-of-market advice on deposits, rates and lenders.

Talk through your deposit options

Speak to an advisor about your specific situation.

Talk it through with an advisor

Every case is different. A short, no-obligation conversation with a whole-of-market advisor is often the fastest way to understand your options. Call 0345 512 0077 or send us a message.

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