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How much deposit do I need for a mortgage?

The most important part of getting a mortgage is being able to afford a deposit. How much deposit you need for a mortgage depends on your circumstances. Latest Deals is here to explain how having a deposit increases your chances of getting a mortgage.

What is the average percentage for a mortgage deposit in the UK?


In the UK, the average percentage for a mortgage deposit is 10% of the property's value. This can change from case to case.

In some cases, it’s possible to have a 5% deposit, and in others, you will need up to a 20% deposit, for example. 

A 5% deposit is usually related to government schemes, they are called 95% mortgages, and they aren’t always available. 

A 20% deposit is often required to get a buy-to-let mortgage. This type of mortgage was created for a person who already owns a property and wants to buy a second one as an investment.  

Some people can also get a 85% mortgage with a 15% deposit because their circumstances don’t allow them to put down only a 10% deposit. 

So how much deposit you will need for a mortgage depends on what type of mortgage you apply for. Read here our guide about types of mortgages. 

For example: 

Suppose you are buying a property that costs £200,000. In that case, you will need £10,000 for a 5% deposit, £20,000 for a 10% deposit, £30,000 for a 15% deposit and £40,000 for a 20% deposit. 


More affordable monthly repayments

The bigger your deposit, the smaller your mortgage. Therefore, your monthly payments will be more affordable. 

Lower interest rates

With a bigger deposit, you can get better interest rates, making your mortgage cheaper. 

Higher chances of being accepted for a mortgage 

If you can give more than a 10% deposit, you will improve your chances of being accepted for a mortgage. 

Lower risk to fall into negative equity 

Negative equity means that you owe more on your mortgage than your property is worth. This can make it harder for you to remortgage your house. 


Have realistic saving goals 

To save for a mortgage deposit, you will need to be realistic about how much you can save every month. 

For that, you will need a budget. We have a guide teaching you how to budget.

Saving for a mortgage deposit takes time. The lower your income, the longer you will need to save a deposit. 

For example:

If you make around £2,000 per month and can save £500 per month, for a £20,000 deposit, you will need to save for 40 months. This is almost three and a half years. 

Consistency and time are your best friends when it comes to saving money. 

You need to be patient and make sure you are putting money aside every month.

Open a Lifetime ISA

If you are a first time home buyer, you can open a Lifetime ISA to help you boost your savings. 

For every £4,000 deposited a year, the government puts £1,000 on top. 

The maximum you can deposit every year is £4,000, with a maximum bonus of £1,000, but this can really help you to achieve your savings goals faster. 

IMPORTANT NOTE: There are some criteria to use a Lifetime ISA to buy a home. Make sure you get as much information as possible before opening an account. You can learn more about it here. 

Save with someone else

It’s much easier to get a mortgage with someone else than alone. 

In this case, both incomes are taken into account to decide how much money they are willing to lend to you. 

Also, it’s much easier to save with someone else than alone. If you realised you can’t save much on your own, you could make plans to save with someone else.

Help from relatives and friends

If you have someone that can help you with your mortgage deposit, you are lucky.

If you get an offset mortgage, you can use someone else’ savings to make your mortgage cheaper without actually spending their money. Learn here more about offset mortgages. 

Try shared ownership 

Shared ownership means that you will own a percentage of the property you want to buy and pay rent for the rest. 

This can make your mortgage cheaper and more accessible. Shared ownership usually allows you to own 25% to 75% of a property. 

IMPORTANT NOTE: Usually, you need to be a first-time home buyer to apply for a shared ownership scheme and they are often only available on new build properties.

Try The Help to Buy Scheme 

The Help to Buy Scheme was created by the UK Government to help people to buy their first home.

With this scheme, the government lends you money for a deposit interest-free for five years. 

You can borrow up to 20 to 40% of the property’s value, depending on where the property is located. 

Then, you also need to put down a 5% deposit  of your own money and get a mortgage for the rest of the property. 

IMPORTANT NOTE: This scheme is not available for all properties. In England, it’s only valid for a new-build property. In addition, this scheme is not available at all times, as it runs according to the UK yearly budget.


What do you think of this?+20 points

Great knowledge, it is really helpful for the first time buyers. Thanks

LD Team

suraniamin thank you so much for this lovely comment 😄

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