Wondering how much cash you need upfront to buy a house in the UK? Most lenders require at least a 5% deposit of the property’s value, though a larger deposit can open the door to a wider range of mortgage deals. Whether you’re looking at a £200,000 starter home or navigating higher prices in London, understanding deposit requirements is a good place to start.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Understanding house deposits in the UK

What is a house deposit?

A house deposit is the upfront cash you contribute toward buying a property. It represents the difference between the property price and your mortgage amount. For example, on a £300,000 house with a 5% deposit, you’d pay £15,000 from your savings and borrow the remaining £285,000 through a mortgage.

This cash contribution forms your equity in the home from the outset. Unlike rent, your deposit - and subsequent mortgage repayments - builds ownership in the property over time.

Why do lenders require a deposit?

Lenders require a deposit to reduce the risk they take on when lending large sums. It demonstrates your ability to save and gives you a financial stake in the property, which lenders view as a signal of lower default risk.

The size of your deposit also determines your Loan-to-Value (LTV) ratio - the mortgage amount expressed as a percentage of the property price. A 5% deposit means a 95% LTV mortgage, which lenders consider higher risk than, say, a 10% deposit (90% LTV). Higher risk generally means higher interest rates, so your deposit size has a direct effect on your monthly mortgage payments.

Minimum deposit for a house in the UK

What is the minimum deposit required?

For most lenders, the minimum deposit is 5% of the property’s value - so £10,000 on a £200,000 property, or £12,500 on a £250,000 home, according to the HomeOwners Alliance. However, not all buyers or property types qualify for this minimum.

The chart below illustrates the relationship between property value and deposit requirements for three popular LTV ratios: 75%, 90% and 95%. As you can see, a lower LTV ratio requires a larger cash deposit.

New-build properties - particularly flats - may require larger deposits, and buyers with limited credit history may face stricter requirements. Self-employed applicants sometimes need a higher deposit depending on the documentation they can provide. Lenders assess each application individually, so requirements can vary.

95% LTV mortgages: availability and schemes

It is possible to buy with a 5% deposit through a 95% LTV mortgage. The government’s Mortgage Guarantee Scheme - made permanent in July 2025 - supports lenders offering 95% mortgages to buyers with good credit, including both first-time buyers and home movers. This scheme is also referred to as Freedom to Buy.

Many lenders also offer 95% mortgages independently of any government scheme. Approval will depend on your income, credit history, and employment status - a lender’s decision is not guaranteed.

It’s worth noting that 95% mortgages typically carry higher interest rates than those with larger deposits. Your monthly repayments will be higher, and you’ll have less equity in your home from the start, which can increase the risk of negative equity if property prices fall. Always consider whether the repayments are affordable before applying.

Always make sure you can afford repayments.

Average house deposit in the UK

National average deposit

The average first-time buyer deposit in England is £63,855, representing around 22% of the property value, according to UK Finance data published by Unbiased. This figure includes buyers who chose to put down more than the minimum 5%, and will reflect a broad range of individual circumstances.

Regional variations in average deposits

Regional house price differences create significant variation in what buyers pay as a deposit. The figures below are drawn from Halifax data reported by the HomeOwners Alliance.

Source: Halifax, via HomeOwners Alliance (2024 data)

As these figures show, London buyers typically put down more than four times the deposit of buyers in the North East. These are averages - your actual requirement will depend on the property price and the deposit percentage you choose.

How much deposit for different property prices

Deposit amounts by property value

The table below shows the deposit required at different percentages for common UK property prices.

A larger deposit means you borrow less, which typically results in lower monthly repayments and may give you access to lower interest rates.

How location affects your deposit

Where you’re buying has a significant effect on the deposit you’ll need. The same percentage deposit will translate to very different amounts depending on local property prices. If saving a deposit in a higher-priced area feels out of reach, it may be worth considering nearby areas with lower average prices - though this is a personal decision that will depend on your circumstances.

What is a good deposit for a house?

Benefits of a 10% deposit or higher (90% LTV or lower)

Saving a 10% deposit rather than the minimum 5% can bring meaningful benefits. You’ll generally have access to a wider choice of mortgage products and more competitive interest rates, which can reduce your monthly repayments over the life of the loan.

A 10% deposit also provides a degree of protection against negative equity - where the outstanding mortgage exceeds the value of your home - if property prices fall. That said, property values can go down as well as up, and a larger deposit does not eliminate this risk entirely.

How different deposit levels compare

For many first-time buyers, 10–15% represents a balance between affordability and the benefits of a lower LTV. Here’s a general overview:

• 5% deposit - allows entry to the market, but typically means higher rates, fewer lender options, and less equity protection

• 10% deposit - generally better rates, more lender choice, and some buffer against property value changes

• 15% deposit - access to a broad range of products with competitive rates and a stronger equity position

• 20%+ deposit - typically the most favourable rates and widest lender choice, though takes longer to save

There is no deposit level that is universally ‘right’. The amount that makes sense will depend on your personal financial situation, local property prices, and how long you’re prepared to wait. It’s worth seeking independent mortgage advice to understand your options.

Government schemes and other options

Shared ownership

Shared Ownership allows you to buy a share of a property - typically between 10% and 75% - and pay rent on the remainder. Your deposit is based on the share you’re buying, not the full property value. On a £300,000 property where you buy a 50% share, a 10% deposit would be £15,000 rather than £30,000.

Shared Ownership is available through housing associations and has specific eligibility criteria. The scheme has advantages but also complexities - including service charges, restrictions on selling, and the need to ‘staircase’ (buy more of the property over time) if you want full ownership. The government’s MoneyHelper website provides independent information on how the scheme works.

Freedom to Buy (Mortgage Guarantee Scheme)

As covered above, the government’s permanent Mortgage Guarantee Scheme (also called Freedom to Buy) supports lenders in offering 95% mortgages. This can make buying with a 5% deposit more accessible, though it does not change the lending criteria lenders apply to applicants.

Lifetime ISA

A Lifetime ISA (LISA) lets you save up to £4,000 per tax year toward a first home, and the government adds a 25% bonus - up to £1,000 annually. To use a LISA for a property purchase, the property must cost £450,000 or less, and the account must have been open for at least 12 months. You must be aged 18–39 to open one.

There are penalties for withdrawing funds for any purpose other than buying a first home or retirement, so it’s important to understand the rules before opening an account. The MoneyHelper LISA guide provides full details.

Guarantor mortgages

Some lenders offer guarantor mortgages, where a family member agrees to cover repayments if the borrower cannot. This can help applicants who struggle to qualify on their own income or deposit. However, it carries significant risk for the guarantor - if repayments are missed, their finances and property could be at risk. Both parties should seek independent legal and financial advice before proceeding.

Note: Help to Buy equity loans in England are no longer available to new applicants. The scheme closed in March 2023.

Factors affecting your deposit needs

Credit history, income, and employment

Your financial profile can affect what lenders require from you beyond the standard 5% minimum. Those with a limited or adverse credit history, gaps in employment, or variable income - such as self-employed applicants - may find that some lenders require a higher deposit or apply stricter criteria.

Lenders assess risk as a whole picture. A strong income and clean credit history may offset a smaller deposit in some cases, but there are no guarantees. A mortgage broker can help identify which lenders are most likely to consider your application.

Property type and market conditions

Property type can influence minimum deposit requirements. New-build flats in particular may require higher deposits from some lenders, due to the risk that their value may fall after completion - sometimes referred to as ‘new-build premium’ deflation. Ex-local authority properties may also attract higher minimum deposit requirements from certain lenders.

Lending criteria can also shift in response to wider economic conditions. It’s worth checking current requirements directly with lenders or through a broker, as these can change.

Saving for your house deposit

Practical saving tips

Start with a clear savings target based on local property prices and the deposit percentage you’re working toward. Keeping your deposit savings in a separate, dedicated account can make it easier to track progress and avoid dipping into the funds.

If you’re aged 18–39, opening a Lifetime ISA early means you can benefit from the government bonus for longer. Even small, regular contributions add up - setting up an automatic transfer on payday before other spending can help build the habit.

Other strategies people use include reducing outgoings, taking on additional income, or - where possible - reducing rent costs by living with family. The right approach will depend on your circumstances.

How long might it take to save?

The time it takes to save a deposit varies considerably depending on local property prices, household income, living costs, and how much you can set aside each month. Using an online savings calculator alongside your own budget is the most reliable way to estimate a realistic timeline for your situation.

Government bonuses through a Lifetime ISA, contributions from family, and other schemes can all reduce the time needed - but availability and eligibility vary.

Next steps

If you’re working toward buying a home, understanding your deposit options is a useful starting point. An online mortgage calculator can give you a rough idea of your borrowing capacity, and speaking with an independent mortgage broker can help you understand which products you may be eligible for based on your individual circumstances.

ClearScore is a credit broker, not a lender.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Always make sure you can afford repayments.

This article is for information purposes only and does not constitute financial or mortgage advice. Eligibility for any mortgage or scheme will depend on your individual circumstances and a lender’s assessment. We recommend speaking with a qualified, independent mortgage adviser before making any decisions.