How Much Deposit Do You Need to Buy a House in the UK?
Most first-time buyers in the UK need a deposit of between 5% and 15% of the property price — so on a £200,000 home, that's £10,000 to £30,000. You can buy with 5% down, but every step up in deposit typically unlocks better mortgage rates, which means lower payments every month for years.
Here's how it actually works, what the right number is for you, and how to get there faster.
What a deposit actually is (and isn't)
Your deposit is the chunk of the purchase price you pay yourself; the mortgage covers the rest. Put down 10% on a £200,000 home and you're borrowing £180,000 — that's a 90% "loan-to-value" (LTV), the ratio lenders price everything around.
What the deposit isn't is the total cash you need. Legal fees, surveys, property tax and moving costs sit on top — typically several thousand pounds. Run your real total through the True Cost calculator so nothing ambushes you later.
Why deposit size changes what you pay every month
Lenders price mortgages in LTV bands. Cross from 95% LTV into 90%, or 90% into 85%, and the rates on offer typically improve. The difference sounds small as a percentage — it isn't small across 25 to 35 years of payments.
The honest trade-off: saving longer for a bigger deposit means better rates, but it also means more months paying rent and the risk of prices moving. There's no universally right answer — there's the right answer for your numbers, your area, and your patience. What matters is choosing deliberately instead of drifting.
Real numbers at a glance
| Property price | 5% deposit | 10% deposit | 15% deposit |
|---|---|---|---|
| £150,000 | £7,500 | £15,000 | £22,500 |
| £200,000 | £10,000 | £20,000 | £30,000 |
| £250,000 | £12,500 | £25,000 | £37,500 |
| £300,000 | £15,000 | £30,000 | £45,000 |
Want to know when you'll hit your number? The Keys Date calculator turns your current savings and monthly rate into an actual month and year — your keys date.
The free money most savers miss: the Lifetime ISA
If you're aged 18–39 and saving for a first home, a Lifetime ISA (LISA) adds a 25% government bonus on top of what you pay in, up to an annual contribution limit. Save the full annual amount and the government's contribution is real, meaningful money — the closest thing to free deposit that exists.
The catches are genuine, so read them: the property price cap, the account needing to be open a minimum period before you use it, and withdrawal penalties if you take the money out for anything other than a first home or retirement. Check the current rules on gov.uk before you rely on any of it.
Five ways to build the deposit faster
- Automate it. A standing order to your savings the day you're paid beats willpower every single month.
- Bank the bonus. LISA first (if it fits your plans), then the best-rate accounts for the rest.
- Cut the big three, not the coffees. Rent, transport and subscriptions move the needle; lattes are a rounding error. One flat-share year can add thousands.
- Windfalls go to the house. Tax rebates, bonuses, side income — pre-decide that they're deposit money before they arrive.
- Gifted deposits are allowed — with paperwork. Family can gift towards your deposit; lenders will want a signed letter confirming it's a gift, not a loan, and where it came from. Sort the paperwork early, not mid-application.
The mistake to avoid
Don't drain yourself to zero to hit a bigger deposit band. Lenders like seeing money left after completion, and you need a buffer for the costs on top — plus the sofa, the boiler that dies in month two, real life. A slightly smaller deposit with a genuine safety cushion beats a bigger one that leaves you exposed.
Where this fits in the bigger picture
The deposit is step one of nine — and honestly, it's the simple one. The steps where first-time buyers actually lose money are the ones after it: getting mortgage-ready, negotiating the price, and not stepping on the ten classic rakes.
Your Property Mate walks you through all of it, in order, from wherever you're starting — even if that's £0 saved today — for less than a coffee and a cake a month.
Your Property Mate provides general educational information about the home-buying process only. It is not regulated financial, mortgage, legal or tax advice — figures shown are illustrative. Always seek advice from an appropriately qualified and regulated professional before making financial or legal decisions.