How much deposit do you need to buy a house in the UK?The minimum deposit accepted by most UK mortgage lenders is 5% of the property purchase price. At the UK average first-time buyer property price of £270,000, a 5% deposit is £13,500. While 5% gets you on the ladder, a 10% deposit (£27,000) typically unlocks significantly better mortgage rates and reduces your monthly payments noticeably. Minimum deposit: 5% of the purchase price. The sweet spot is 10% to 15% — this moves you into better rate bands without requiring years of additional saving. Minimum deposit by property price
How deposit size affects your mortgage rate
Deposit rules for different buyer types
What counts as a valid deposit?
How to save your deposit faster
Verdict Aim for 10% where possible; 5% gets you started A 5% deposit gets you on the ladder but at a cost premium. A 10% deposit is achievable for most savers within 2 to 3 years and delivers a meaningful rate improvement. Use a Lifetime ISA from day one to maximise the government bonus. Frequently asked questionsCan you get a mortgage with a 5% deposit in 2026? Yes. Several lenders offer 95% LTV mortgages for residential purchases. Rates are higher than lower-LTV products but the product is widely available. First-time buyers benefit from no stamp duty on purchases up to £300,000. Does the deposit have to be in cash savings? Not necessarily. Gifted deposits from family, Lifetime ISA funds, inheritance, and equity from a property sale all count. The lender will want evidence of where the deposit came from (source of funds check). What is the minimum deposit for a new build? New builds follow the same minimum deposit rules as existing properties — 5% for residential mortgages. Some lenders apply additional restrictions on new builds (particularly flats) due to new-build premium concerns. Can I use a Lifetime ISA for a deposit? Yes. LISA funds including the government bonus can be used toward a deposit on a first home priced up to £450,000. The account must be open for at least 12 months before use. Withdrawing for any other purpose incurs a 25% penalty. |
How Much Deposit Do I Need to Buy a House UK 2026?
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