How much deposit do you need for a house?

Key takeaways

• Most buyers need at least a 5% deposit, but saving 10–25% usually unlocks better mortgage rates, lower monthly payments and reduces the risk of negative equity.

• Average first‑time buyer deposits sit around 20%, with 2024 figures showing a typical £61,090 deposit on a £311,034 home.

• Zero‑deposit mortgages exist but carry higher risks, often requiring strict criteria, guarantors or family‑supported products, and can leave buyers exposed if house prices fall.

• Raising a deposit typically means combining savings, budgeting and government schemes, such as Lifetime ISAs.

What’s the minimum deposit I need?

Depending on the lender, the minimum deposit you'll need for a mortgage is usually 5% of the property's value.

For example, if you're buying a property worth £300,000, you'll need to pay £15,000 as a deposit.

To work out how much you need to save for a deposit, it may be a good idea to calculate how much you can afford to borrow.

In general, the more you put down as a deposit, the cheaper your mortgage deal.

What is the average deposit for a first-time buyer?

According to Halifax data from February 2025, the average deposit for a home came in at £61,090 in 2024.

In 2024, the average cost of a first-time buyer home was £311,034 (up 8% vs 2023), with deposits averaging 20% of the purchase price.

The exact amount you need as a deposit depends on the property you want to buy and its location. Average deposits tend to be a lot higher in London, where property is more expensive.

Halifax found that the majority of first-time buyers (62%) purchased their first home jointly with someone else, with just 38% of first-time buyers buying solo.

Should I save for a bigger deposit?

Yes, a bigger deposit usually saves you money overall, but only if it doesn’t drain your essential savings.

With a first-time buyer mortgage, you’ll need to save at least a 5% deposit, but a 10% deposit will usually give you access to more competitive mortgage deals.

The bigger deposit you put down, the lower the risk you are to the lender and, in general, the lower the interest rate will be. This is because putting down a bigger deposit reduces your loan-to-value ratio.

Pros

• The bigger the deposit you can save, the stronger position you should be in. This is because

  mortgage interest rates are lower at 90% LTV compared to 95%.

• A bigger deposit also will also mean lower monthly repayments.

• You’ll be at a lower risk of negative equity if you have a bigger cash deposit to put down.

Cons:

• If house prices rise while you are saving up a bigger deposit, the amount you’ve saved is reduced as a percentage of the house value.

• You could be paying rent while you wait to buy, which some see as wasting money.

What about 0% deposit mortgages?

A 0% deposit (100% LTV) mortgage allows buying a home without putting down a deposit.

Before the 2008 global financial crisis, 100% mortgages were fairly common in the UK, with some lenders like Northern Rock offering up to 125% LTV deals.

After the crisis, lenders largely stopped offering zero-deposit products because they were seen as too risky.

Since the mid-2020s, a small number of 100% LTV mortgages have begun to reappear as lenders seek ways to help buyers who can’t save a large deposit.

For example, in February 2026 Melton Building Society launched a 100% LTV (0% deposit) mortgage only sold via mortgage brokers. All applications are manually underwritten and subject to the society’s lending criteria, credit assessment, and property valuation standards.

Some other lenders offer 100% mortgages with a guarantor. This means you’ll need someone else, usually a parent or guardian who already owns a property, who will be responsible for payment of the mortgage if you fail to pay.

You can also take out a family mortgage. Similar to a guarantor mortgage, this usually means a family member needs to deposit around 20% of the property’s value in a dedicated savings account, which they cannot touch for a set period (e.g. 5 years).

While a 100% mortgage means you don’t need to save for a deposit, it carries bigger risks. If house prices fall, you are at risk of negative equity. This is when your home is worth less than the amount you owe on your mortgage.

How can I raise a mortgage deposit?

Raising a mortgage deposit usually requires a combination of strict budgeting, maximising savings, and exploring financial help.

Here are some key ways to raise a deposit:

• Lifetime ISAs: With this savings scheme, the government will pay in £1 for every £4 you save. You can invest a maximum of £4,000 a year towards your first home.

• Regular savings: Regular savings accounts typically offer some of the highest interest rates available, but you’ll be limited by how much you can pay in each month.

• Saving/budgeting apps: There are a number of apps that save your spare cash, which can help you build up a deposit fund. Some of these use AI to save varying amounts depending on your spending habits.

• Assess your living situation: Is your rent too expensive for you to save for a mortgage? Some

  first-time buyers move back in with their parents or go into a flat share while they’re saving for a deposit.

For our full breakdown, read our guide on how to raise a deposit.

Can I use a credit card to fund my house deposit?

No, lenders won’t allow a mortgage deposit to be funded by borrowing (including credit cards).

What are the other costs associated with a getting a mortgage

On top of your deposit and monthly repayments, there are other costs associated with a mortgage that you’ll need to factor in. These include: