How much deposit do I need for a house?
By Sam Kane · Last checked 9 October 2026
How much deposit do you need for a house? Most first-time buyers in the UK need at least 5% of the price. At the average price a first-time buyer paid in England in July 2026, £246,000, that is £12,300. A bigger deposit, such as 10% or 15%, usually opens up more mortgages and lower interest rates.
The deposit advice in this guide applies across the UK. The stamp duty section covers England, because Scotland and Wales have their own taxes. For the whole journey, from saving to getting the keys, read our guide on going from renter to first-time buyer.
The short version
- 5% is the usual minimum. A few mortgages need no deposit, but they are rare.
- Lenders talk about “loan to value”. The less you borrow compared with the price, the better the rates tend to be.
- At England’s average first-time buyer price, 5% is £12,300 and 10% is £24,600.
- A Lifetime ISA adds 25% to what you save, up to £1,000 a year, if you are under 40 when you start.
- Family can help. Many lenders accept a gifted deposit with a signed letter saying it is not a loan.
- Budget for more than the deposit. Solicitor, survey and sometimes stamp duty come on top.
What does loan to value mean?
Loan to value, or LTV, is the part of the price you borrow, shown as a percentage. If a home costs £200,000 and you borrow £180,000, your LTV is 90%, because your deposit is 10%.
Lenders sort their mortgages into LTV bands, such as 95%, 90%, 85% and lower. NatWest explains that a lower LTV means you own more of the home from day one, so the lender takes less risk and may offer a better rate. A higher LTV usually means a higher rate.
| Your deposit | Your LTV | What it usually means |
|---|---|---|
| 5% | 95% | The smallest common deposit. Fewer mortgages to choose from and higher rates |
| 10% | 90% | More choice, and rates are often lower than at 95% |
| 15% | 85% | More choice again |
| 25% or more | 75% or less | Often the lowest rates on offer |
Rates change every week, so this shows the pattern, not real prices.
The government’s mortgage guarantee scheme helps keep 5% deposits on offer. It covers mortgages at 91% to 95% LTV across the whole UK, and it has been permanent since July 2025.
How much deposit do I need for a house at today’s prices?
These examples use the average prices first-time buyers paid in July 2026, from the UK House Price Index published by HM Land Registry on 16 September 2026, plus a round £300,000.
| Home price | 5% deposit | 10% deposit | 15% deposit |
|---|---|---|---|
| £185,000 (Wales first-time buyer average) | £9,250 | £18,500 | £27,750 |
| £246,000 (England first-time buyer average) | £12,300 | £24,600 | £36,900 |
| £300,000 | £15,000 | £30,000 | £45,000 |
| £467,000 (London first-time buyer average) | £23,350 | £46,700 | £70,050 |
Prices in your area may be well above or below these averages.
Can I buy with no deposit?
A small number of lenders offer 100% mortgages, for example to renters who can show a long record of paying rent on time. Read our guide to 100% mortgages to see how they work and the risks.
Other routes can lower the deposit you need. The First Homes scheme sells some new homes in England at a discount, so 5% of a lower price is a smaller sum, though few First Homes are being built. Deposit Unlock, which helped with new build homes, closed to new buyers in April 2026.
How to save for a house deposit while renting
- Set a target. Pick a price, then work out 5% and 10%, plus the other costs below.
- Check your rent. Rent is likely your biggest bill. Our guide to how much rent you can afford helps you see if there is room to save.
- Save on payday. Set up a standing order to your savings account the day you are paid, so the money moves before you can spend it.
- Use a Lifetime ISA if you can. The bonus makes a real difference over a few years.
The years you spend saving are years of rent paid. Report My Rent can add those payments to your Experian, Equifax and TransUnion credit files each month, so they are there when a lender looks.
How does a Lifetime ISA work?
A Lifetime ISA is a savings account for a first home or for later life. The main rules on GOV.UK on 8 October 2026 were:
- You must make your first payment before you turn 40.
- You can pay in up to £4,000 a year, until you turn 50.
- The government adds a 25% bonus, so up to £1,000 a year.
- To use it for your first home, the home must cost £450,000 or less, you must buy at least 12 months after your first payment, and you must buy with a mortgage through a solicitor or conveyancer.
- If you take money out for any other reason before 60, you pay a 25% withdrawal charge. That charge takes back the bonus and a bit of your own money too.
The £450,000 limit matters in London, where the average first-time buyer paid £467,000 in July 2026. If you might buy above the limit, a Lifetime ISA could cost you money.
Here is an example. If you put £300 a month into a Lifetime ISA, you pay in £3,600 a year and the bonus adds £900, so you have £4,500 a year before interest. That reaches £12,300, a 5% deposit at England’s average first-time buyer price, in under three years.
The government plans to offer a new First Time Buyer ISA in place of the Lifetime ISA. It consulted on the plan from June to August 2026 and has not set a start date. Until then, GOV.UK still lists the Lifetime ISA as open.
The consultation also set out what the government proposes for people who already have a Lifetime ISA. These are proposals, not final rules:
- you could keep paying into your Lifetime ISA under the current rules
- you could not move your Lifetime ISA into the new account
- you could use money from both accounts to buy the same home
- you could pay into only one of the two in each tax year
Can family give me money for a deposit?
Yes. Many lenders accept a gifted deposit, which is money given to you to put towards the home. Santander and NatWest both say it usually comes from close family, and both also accept gifts from friends.
The key rule is that it must be a gift, not a loan. The lender will ask for a gifted deposit letter from the person giving the money, saying how much they are giving, where it came from, that they do not expect it back and that they will not own any share of the home.
Your solicitor will also check the giver’s ID and follow the money from their account to yours. Large gifts can, in some cases, count for inheritance tax if the giver dies within seven years, so the giver may want advice.
What other costs come on top of the deposit?
- Stamp duty (England and Northern Ireland). First-time buyers pay nothing on the first £300,000. They pay 5% on the part from £300,001 to £500,000. Above £500,000, the first-time buyer relief does not apply and normal rates are due on the whole price.
- Solicitor or conveyancer, who does the legal work.
- A survey, to check the condition of the home.
- Mortgage fees, such as an arrangement fee on some deals.
- Moving costs, from a van to the basics for a new home.
| Price (first-time buyer, England) | Stamp duty |
|---|---|
| £350,000 | £2,500 |
| £467,000 | £8,350 |
Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax. They have their own bands and rules, so check the Revenue Scotland or Welsh Revenue Authority website if you are buying there.
Common questions
Is a 5% deposit enough to buy a house?
For many first-time buyers, yes. Many lenders offer mortgages at 95% LTV. You will usually have fewer deals to choose from than with a 10% deposit.
How much deposit do I need to buy a £200,000 house?
5% is £10,000, 10% is £20,000 and 15% is £30,000. As a first-time buyer in England, you would pay no stamp duty at that price.
Does a gifted deposit have to be paid back?
No. If it must be paid back, it is a loan, and many lenders will not accept a loan as a deposit, or will count the repayments when they work out what you can borrow.
Can my rent count while I save for a deposit?
Yes. Rent you pay while you save can be reported to Experian, Equifax and TransUnion, so it shows on your credit file. Experian says lenders may see on-time rent as a sign you are likely to pay them back.
Sources
- HM Land Registry, UK House Price Index for July 2026, published 16 September 2026
- GOV.UK, Lifetime ISA and Withdrawing money from your Lifetime ISA, read 8 October 2026
- HM Treasury, First Time Buyer ISA consultation, read 9 October 2026
- HM Treasury, First Time Buyer ISA: consultation document, June 2026, read 9 October 2026
- HM Treasury, 2025 mortgage guarantee scheme
- GOV.UK, Stamp Duty Land Tax: residential property rates, read 8 October 2026
- NatWest, What is LTV? and Gifted deposits, read 8 October 2026
- Santander, Gifted deposits, read 8 October 2026
- Experian, Can paying rent build your credit score?
This guide is general information, not financial advice. A mortgage is a loan secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.