Money Guides
⏱ 4 min read
📅 Updated Apr 2026
How Much Deposit Do I Need to Buy a House UK 2026?
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| Property price | 5% deposit | 10% deposit | 15% deposit | 20% deposit |
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| £150,000 | £7,500 | £15,000 | £22,500 | £30,000 | | £200,000 | £10,000 | £20,000 | £30,000 | £40,000 | | £250,000 | £12,500 | £25,000 | £37,500 | £50,000 | | £300,000 | £15,000 | £30,000 | £45,000 | £60,000 | | £400,000 | £20,000 | £40,000 | £60,000 | £80,000 | | £500,000 | £25,000 | £50,000 | £75,000 | £100,000 |
How deposit size affects your mortgage rate| Deposit | LTV | Typical rate range (April 2026) | Approx monthly payment (£250k purchase) |
|---|
| 5% | 95% | 5.0 to 5.8% | £1,470 to £1,660 | | 10% | 90% | 4.5 to 5.2% | £1,370 to £1,560 | | 15% | 85% | 4.2 to 4.8% | £1,280 to £1,450 | | 20% | 80% | 4.0 to 4.5% | £1,230 to £1,380 | | 25% | 75% | 3.9 to 4.3% | £1,190 to £1,320 | | 40% | 60% | 3.8 to 4.1% | £1,160 to £1,250 |
Deposit rules for different buyer types- First-time buyers — minimum 5%; eligible for Lifetime ISA government bonus toward deposit
- Home movers — minimum 5%; equity from current property can be used as deposit
- Buy-to-let investors — minimum 20 to 25% deposit required
- Second home buyers — minimum 5%; 5% stamp duty surcharge applies
- Shared ownership — deposit on your share only (e.g. 5% to 10% of 40% share)
What counts as a valid deposit?- Your own savings — the primary source accepted by all lenders
- Gifted deposit from family — accepted with a signed gift letter; must not be a loan
- Lifetime ISA — government bonus included in the balance counts
- Inheritance — accepted with evidence of source
- Sale proceeds from a previous property
- Builder or developer incentive — rules vary; check with your lender
How to save your deposit faster- Open a Lifetime ISA and claim the 25% government bonus (up to £1,000/year)
- Use a high-interest easy-access savings account for the bulk of your deposit
- Consider a Help to Save account if you claim Universal Credit or Working Tax Credit
- Set up a direct debit on payday to automate saving before you can spend
- Review subscriptions and regular outgoings for savings opportunities
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. |
Part of our complete guide: UK Mortgage Rates April 2026 - Current Rates & Guide → Find a whole-of-market mortgage broker →
Editorial Disclaimer
The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.
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