How much deposit do I need for my first home?
By Aditi Sinha · Reviewed by Seema Babber
· 6 min read
Quick summary
- Most lenders need at least 5% of the purchase price as a deposit.
- With 10% or more you'll usually have more lenders to choose from and lower rates.
- On top of the deposit, budget for legal fees, a survey and any Stamp Duty.
What the percentages mean
Lenders describe mortgages by loan-to-value (LTV) — the share of the price you borrow. A 10% deposit means a 90% LTV mortgage.
| Deposit | LTV | On a £300,000 home |
|---|---|---|
| 5% | 95% | £15,000 |
| 10% | 90% | £30,000 |
| 15% | 85% | £45,000 |
Costs on top of the deposit
- Solicitor or conveyancer fees
- A survey, plus the lender's valuation if it isn't included
- Stamp Duty — first-time buyers may pay less or none, depending on the price
- Moving costs and any lender product fee
Ways to build or boost your deposit
- Save into a Lifetime ISA — the government adds a 25% bonus, within limits.
- Gifted deposit — many lenders accept money from family with a signed gift letter.
- Buy with someone else — combining deposits and incomes can widen your options.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources
GOV.UK — Stamp Duty Land Tax GOV.UK — Lifetime ISA MoneyHelper — buying a home
Written by
Aditi Sinha · Mortgage & protection adviser
Aditi helps buyers understand their options in plain language, and reviews protection needs alongside the mortgage so nothing is left to chance.
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