GUIDES
How Much Deposit Do You Need to Buy a House - GoMortgage®
Minimum Deposit Requirements - What Lenders Typically Demand
In the UK, many lenders accept a minimum deposit of just 5% of the property’s purchase price. That means you could get on the ladder with a relatively small upfront cost. Welcome to our guide on: How much deposit do you need to buy a house.
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First Time Buyers Mortgages - How much deposit do you need to buy a house
What Deposit Level Works Best - and Why Bigger Is Often Better
What “Deposit” Includes (And What It Doesn’t)
When working out your deposit, remember:
- The deposit must be cash-saved funds – savings, gifted deposit, or other acceptable deposit sources (bank savings, cash gifts, etc.).
- It does not include proceeds from other mortgage borrowing or unsecured loans.
- You also need extra funds beyond deposit: legal fees, valuation fees, moving costs, and sometimes a buffer for unexpected expenses (repairs, maintenance, initial bills).
For some property types (e.g. new-builds, flats), lenders may ask for higher deposit or different criteria. Always check property-type requirements.
What Buyers Actually Put Down - What’s Normal in the UK
- While 5% deposit mortgages are available, the average first-time buyer deposit tends to be significantly higher.
- Many first-time buyers aim for a 10–20% deposit to improve their chance of approval and get better interest rates.
- As of 2025 data: for many buyers, deposits of around 20% are common – especially outside high-price areas – because they offer stability and the best long-term deals.
Access Your Credit Report
Knowing exactly what lenders see is the first step. Checkmyfile lets you view your full credit picture across all three UK agencies in one place, helping you spot issues, track progress, and avoid surprises before you apply.
What to Watch Out For with Minimum Deposit
- A 5% deposit / 95% LTV mortgage often comes with higher interest rates, which makes monthly repayments more expensive.
- Because you’re borrowing more, you need to pass stricter affordability checks – lenders will scrutinise income, spending, debts more closely.
- If property prices fall, there’s a higher risk of falling into negative equity (owing more than the property’s worth) with high-LTV mortgages – especially with new-builds, which may lose value after purchase.
Your choice of lenders and mortgage products may be more limited – many lenders prefer borrowers with bigger deposits for better security.
What You Should Aim For - GoMortgage’s Advice
When you come to us at GoMortgage, this is what we usually recommend:
- Aim for at least 10% deposit (90% LTV) – it gives you better flexibility, rates, and fewer restrictions than the minimum.
- If possible, go for 15–20% (or more) – gives the best long-term security, lowest rates, and easier affordability.
- Have extra savings beyond deposit – for legal fees, valuation fees, moving costs, and unexpected home-ownership expenses.
- If deposit is tight, consider shared ownership, help-from-family deposits, or gift deposits – we’ll check what lenders accept.
Don’t overstretch your budget – just because 5% deposit mortgage is technically possible doesn’t always mean it’s smart. Budget for future interest changes, maintenance, and lifestyle.
Want Help Calculating Your Deposit?
If you’re unsure how much deposit you need to aim for, or how much you need to save before applying – give GoMortgage® a call on 01253 935050. We’ll help you:
- Work out what deposit you need based on your target property
- Review your savings, income, outgoings – see what deposit is realistic
- Compare how deposit size affects monthly repayments, interest rates and affordability
GoMortgage – Real advice. Real deposit planning. Real homes.
We hope you enjoyed our guide – How much deposit do you need to buy a house.
Speak With A Mortgage Advisor today
Contact our friendly mortgage advice team today. Sound mortgage advice from the experts at GoMortgage.
Author: Chris Days - Gomortgage
- 5 Mins
- Updated: Nov 17th 2025
Frequently Asked Questions
Does checking my credit report with Checkmyfile hurt my score?
No – checking your own report is a “soft search” and has no effect on your credit score. checkmyfile.com+1
If Checkmyfile shows I’m “high scorer,” will I automatically get a mortgage?
Not automatically. A strong credit-file helps a lot – but lenders also check income, deposit, affordability, employment, property value, and more.
What if I have old defaults or a CCJ on my report?
That complicates things, but doesn’t always rule you out. With a decent deposit, stable income, and honest disclosure, specialist or adverse-credit lenders (or certain mainstream ones) may still accept you.
Will all lenders use Checkmyfile when they assess me?
No – many lenders pull directly from one of the main credit reference agencies (Experian, Equifax or TransUnion). Checkmyfile is for you – to preview what they might see.
How often should I check my file?
Regularly. Credit data changes over time (payments, account closures, reporting updates) – checking every few months helps you catch anything before applying.
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Speak With A Mortgage Advisor.
Contact our friendly mortgage advice team. Sound mortgage advice from the experts at GoMortgage.
