What is the average first time buyer deposit in the UK?The average deposit paid by first-time buyers in the UK is approximately £53,000, equivalent to around 19–20% of the average first-time buyer property price of £270,000 (UK Finance, 2025). This average is heavily influenced by London and South East buyers — in other regions the typical deposit is considerably lower. UK average first-time buyer deposit: approximately £53,000 (19–20%). London average: approximately £115,000. North East average: approximately £20,000. Source: UK Finance, 2025. Average first time buyer deposit by region
What is the minimum deposit for a first time buyer?The minimum deposit most lenders accept is 5% of the purchase price. At the UK average first-time buyer price of £270,000, a 5% deposit is £13,500. However, 5% deposit mortgages carry higher interest rates — a 10% deposit typically unlocks significantly better rates and lower monthly payments. How deposit size affects your mortgage rate
How to save a first time buyer deposit faster
Verdict 5% is the minimum; 10% makes a meaningful rate difference The average UK first-time buyer saves around £53,000 (20%), but 10% is achievable in most regions and delivers a significantly better mortgage rate than 5%. Use a Lifetime ISA for the government bonus if you have not started saving yet. Frequently asked questionsCan you get a mortgage with a 5% deposit as a first time buyer? Yes. Several lenders offer 95% LTV mortgages for first-time buyers. Rates are higher than lower-LTV products, but the Mortgage Guarantee Scheme has supported 95% LTV lending for eligible buyers. Does the deposit have to come from your own savings? No. Gifted deposits from family are accepted by most lenders. You will usually need a signed gift letter confirming the money is a gift, not a loan, and that the donor has no interest in the property. Can shared ownership reduce the deposit I need? Yes. With Shared Ownership you only need a deposit on the share you purchase, not the full property value. On a £270,000 property, buying a 40% share means a deposit on £108,000 rather than £270,000. What is a Lifetime ISA? A Lifetime ISA allows you to save up to £4,000 per year and receive a 25% government bonus — up to £1,000 per year. Funds can be used towards a first home purchase under £450,000 after the account has been open for at least 12 months. |
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