Average First Time Buyer Deposit UK 2026

Average First Time Buyer Deposit UK 2026 — How Much Do You Need?

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 7 Apr 2026

Last reviewed 20 Apr 2026

✓ Fact-checked

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

Region	Average FTB property price	10% deposit	20% deposit
London	£510,000	£51,000	£102,000
South East	£350,000	£35,000	£70,000
South West	£290,000	£29,000	£58,000
East of England	£310,000	£31,000	£62,000
West Midlands	£230,000	£23,000	£46,000
North West	£210,000	£21,000	£42,000
Yorkshire	£200,000	£20,000	£40,000
North East	£160,000	£16,000	£32,000
Scotland	£185,000	£18,500	£37,000
Wales	£200,000	£20,000	£40,000

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

Deposit	LTV	Typical rate (April 2026)	Monthly cost on £270k purchase
5% — £13,500	95%	5.0–5.8%	~£1,500–£1,700/month
10% — £27,000	90%	4.5–5.2%	~£1,380–£1,560/month
15% — £40,500	85%	4.2–4.8%	~£1,280–£1,450/month
20% — £54,000	80%	4.0–4.5%	~£1,230–£1,380/month
25% — £67,500	75%	3.9–4.3%	~£1,190–£1,310/month

How to save a first time buyer deposit faster

Lifetime ISA (LISA) — save up to £4,000/year and receive a 25% government bonus (up to £1,000/year). Must be used for a first home purchase under £450,000
Shared Ownership — buy a 25–75% share with a smaller deposit on the share purchased only
Gifted deposit from family — accepted by most lenders; a signed gift letter is usually required
High-interest savings accounts — maximise returns while building your deposit; compare the best easy-access and fixed-rate options

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 questions

Can 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.