The minimum deposit for most residential mortgages is 5% of the purchase price. On a £250,000 home, that's £12,500.
Why a bigger deposit helps
Lenders price mortgages in loan-to-value (LTV) bands — typically 95%, 90%, 85%, 75% and 60%. Each step down usually unlocks lower rates. Moving from a 5% to a 10% deposit can make a real difference to your monthly payment.
Buy-to-let deposits
Buy-to-let mortgages usually need at least 20–25% deposit.
Ways to build your deposit
- Lifetime ISA: 25% government bonus on up to £4,000 a year for first homes up to £450,000
- Gifted deposit from family, with evidence confirming it is not a repayable loan
- Shared Ownership: buy a 10–75% share and you only need a deposit on that share
- Family-assisted mortgages, where a relative's savings or property act as security
Expert tip: Not sure if your deposit is enough? Pop your numbers into the mortgage calculator, then let's chat about which LTV band you're in.
This guide is general information, not personal advice. Figures are correct at the time of updating and rules can change. Your home may be repossessed if you do not keep up repayments on your mortgage.
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