Key facts: The minimum deposit for a standard residential mortgage is 5% of the purchase price. Moving to 10% unlocks noticeably cheaper rates, and each 5% band above that improves pricing again. Buy-to-let typically requires 25%, and adverse credit usually adds 5–15% to whatever you'd otherwise need.
The minimum: 5% of the purchase price
On a £250,000 home, a 5% deposit is £12,500, with a 95% loan-to-value (LTV) mortgage covering the rest. These deals are widely available to buyers with clean credit and stable income — see our guide to the best low-deposit mortgages. The trade-off is price: lenders charge more when you bring less equity, and affordability checks are stricter.
Why deposit bands matter so much
Mortgage pricing steps down at each LTV band — 95%, 90%, 85%, 80% and so on. The jump from 5% to 10% is the one that matters most: it moves you out of the most expensive bracket entirely, often saving thousands over a fixed period. If you're within touching distance of the next band, it's usually worth pausing to reach it — or asking family about a gifted deposit, which most lenders accept from close relatives with a signed letter confirming it's not a loan.
Deposits for different situations
Buy-to-let normally needs 25%, because lenders lean on rental income rather than yours. Bad credit raises whatever the baseline would be — often to 15–25% depending on how recent and severe the issues are. New-build flats frequently carry a lender cap around 75–85% LTV, meaning a 15–25% deposit even for clean-credit buyers. Shared ownership works differently: your deposit applies only to the share you're buying, so 5% of a 40% share of a £250,000 home is just £5,000.
Building a deposit faster
The Lifetime ISA adds a 25% government bonus to up to £4,000 a year of savings for a first home. Gifted deposits shortcut years of saving. And clearing expensive debt first often beats saving in parallel — lower outgoings also increase what lenders will let you borrow. Don't over-save either: holding cash back for legal fees, surveys, stamp duty (if it applies) and moving costs matters as much as the deposit itself.
Getting a real answer for your situation
The genuinely useful number isn't the minimum deposit — it's the deposit at which your income, credit profile and target property produce an affordable approval. A whole-of-market broker can tell you that in one conversation. Get matched with a mortgage broker through Nesto — free, no obligation.
Frequently asked questions
Can I buy a house with no deposit?
True 100% mortgages are rare. The realistic no-deposit routes are family-assisted products — a relative's savings or property standing as security — or a gifted deposit.
Is 5% or 10% deposit better?
10% if you can reach it — the rate improvement from leaving the 95% LTV band is the biggest single pricing step, and it usually justifies a short delay to save more.
Can my parents give me my deposit?
Yes — most lenders accept gifted deposits from close family with a signed declaration that it's a gift, not a loan, plus standard anti-money-laundering checks on the giver.
How much deposit do I need for buy-to-let?
Usually 25%, with the loan assessed mainly on expected rental income covering 125–145% of a stress-tested interest figure.