What Is the Minimum Deposit for a House in the UK?
Find out the minimum deposit needed to buy a house in the UK. Learn how much you need to save for a mortgage and tips to boost your deposit faster.
How Much Deposit Do You Need to Buy a House in the UK?
If you’re dreaming of buying a home in the UK one of the first questions you’ll ask is:
“What’s the minimum deposit I need for a mortgage?”
Let’s break it down:
The minimum deposit for a house in the UK is typically 5% of the property value.
This means for a £200 000 home you’d need at least £10 000 as a deposit. However while 5% is the minimum for some lenders a higher deposit often leads to better mortgage rates and lower monthly repayments.
Minimum Deposit for a Mortgage: A Quick Breakdown
Property Price | 5% Deposit (Minimum) | 10% Deposit | 15% Deposit |
|---|---|---|---|
£150 000 | £7 500 | £15 000 | £22 500 |
£200 000 | £10 000 | £20 000 | £30 000 |
£300 000 | £15 000 | £30 000 | £45 000 |
Can You Get a Mortgage with a 5% Deposit in the UK?
Yes 95% mortgages (where you put down a 5% deposit) are available in the UK especially for first-time buyers .
However keep in mind:
Higher interest rates : Smaller deposits often mean higher mortgage rates.
Fewer mortgage options : Not all lenders offer 95% mortgages.
Stricter affordability checks : Lenders may scrutinise your income expenses and credit history more closely.
Government Schemes to Help with Deposits
Struggling to save for a deposit? You might qualify for help through government schemes :
First Homes Scheme – Discounted homes for first-time buyers.
Shared Ownership – Buy a share of a home with a lower deposit.
Lifetime ISA – Get a 25% government bonus on your savings.
Deposit Unlock – 5% deposit scheme for new builds.
These options can help you get on the property ladder with a lower deposit .
Why a Bigger Deposit is Better
While 5% is the minimum aiming for a 10% or 15% deposit offers several benefits:
Lower interest rates
Access to more lenders
Reduced monthly payments
Lower loan-to-value (LTV) ratio – A key factor in mortgage approval
Saving a larger deposit gives you better mortgage deals and helps future-proof your finances.
Top Tips to Save for a Deposit Faster
Create a savings plan – Set a monthly savings target.
Open a Lifetime ISA – Get a 25% government bonus.
Cut unnecessary expenses – Review your subscriptions and spending.
Increase your income – Consider side hustles or part-time work.
Get help from family – A gifted deposit can boost your chances.
Use Our Free Mortgage Calculator
Not sure how much you need to save? Try our free Mortgage Affordability Calculator to estimate your borrowing capacity based on your income expenses and deposit.
It’s a fast easy way to plan your home buying journey .
Final Thoughts: Start Your Home Buying Journey with Confidence
The minimum deposit for a house in the UK is typically 5% but a bigger deposit can help you access better mortgage deals and reduce monthly repayments.
Start planning early use our tools and explore government schemes designed to help first-time buyers .
Try our Mortgage Calculator now and get one step closer to your new home!
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