Your deposit shapes both the products you'll be offered and the rate you'll pay. 5% is the floor for most mainstream UK mortgages; 15% is where rates start to look healthy; 25% is where you reach the best of the market. Enter a price below to see your deposit at each LTV — plus how long it'll take to save.

What is LTV?

LTV stands for loan-to-value. It's the size of your mortgage as a percentage of the property price. If you buy a £300,000 home with a £30,000 deposit and a £270,000 mortgage, that's a 90% LTV mortgage. The remaining 10% is your deposit.

LTV matters because it's the single biggest input into the rate you'll be offered. Lenders price products in LTV bands — typically 95%, 90%, 85%, 80%, 75% and 60% — and rates drop materially each time you cross a band downward. Moving from 95% to 90% LTV typically shaves 0.4–0.8 percentage points off the rate. From 90% to 75% can be another 0.3–0.5 points combined.

Why a bigger deposit matters

Three things improve when you put down a larger deposit.

• Lower interest rate. Each LTV band you cross unlocks better-priced products. The compounding effect over 25 years is significant — a 0.5% lower rate on a £250,000 mortgage saves around £20,000 of interest over the life of the loan.
• Smaller mortgage. Bigger deposit = smaller mortgage = lower monthly payment, even before any rate change.
• More products available. At 95% LTV you may be choosing between 30–50 products. At 75% LTV the same lender book typically offers 200–400. More competition, sharper pricing.

Minimum deposits in the UK

• 5% deposit (95% LTV) — Available across most mainstream lenders. Higher rates and tighter affordability tests. Workable for first-time buyers.
• 10% deposit (90% LTV) — Materially more products and better rates. The first real step-up from the floor.
• 15% deposit (85% LTV) — Sweet spot for first-time buyers. Most mainstream lenders compete in this band, and the rates are noticeably keener than at 90%.
• 20% deposit (80% LTV) — Strong position. Rate differential vs 85% is smaller but still meaningful.
• 25% deposit (75% LTV) — Best mainstream rates. Beyond this, rate improvements taper sharply.

First-time buyer considerations

If this is your first home, three things are worth knowing.

• Lifetime ISA bonus. If you're 18–39, a Lifetime ISA gives you a 25% government bonus on contributions up to £4,000/year — up to £1,000/year of free money toward your deposit, provided the property is under £450,000 and the LISA has been open for at least 12 months before purchase. Use the deposit savings calculator to see how much the LISA accelerates your timeline.
• First-time buyer stamp duty relief. FTBs in England and Northern Ireland pay no SDLT on properties up to £300,000, with a reduced 5% rate on the £300k–£500k slice. Above £500k, no relief. Run the numbers on the first-time buyer SDLT calculator.
• Joint applications. If buying with a partner, both can hold separate LISAs and both bonuses can be used. Both must be first-time buyers for FTB SDLT relief to apply.

Gifted deposits

Gifted deposits from immediate family (parents, grandparents, siblings) are widely accepted by UK lenders. The mechanics:

• You'll need a written gifted-deposit letter from the giver, signed and ideally witnessed, confirming the money is a gift and not a loan, and that the giver has no interest in the property.
• Some lenders will ask for proof of the giver's funds — typically bank statements showing the gift originated from savings, sale of an asset, or other legitimate source.
• Conveyancers will run source-of-funds checks under anti-money-laundering rules. Build in 2–3 weeks for this if a gift is being made close to exchange.
• Loans for deposits are usually not acceptable — they reduce your affordability and complicate the lender's risk model.

How lenders assess your deposit

The number on the page is only part of the picture. Lenders also look at:

• Source of funds. Savings, equity from a sale, inheritance and gifts (with paperwork) are simple. Cryptocurrency gains, gambling winnings, and informal cash gifts are harder. Lenders typically want 3–6 months of bank statements showing where the deposit accumulated from.
• How long the funds have been with you. Funds that landed in the last 30 days will need explaining. Deposits sitting in the same account for 6+ months attract minimal scrutiny.
• Whether the deposit is "all yours". If you're using a Help to Buy ISA bonus, a LISA bonus, or a developer cashback, the lender treats these slightly differently — usually fine but worth flagging early.

Frequently asked questions

How much deposit do I need to buy a house in the UK?

The minimum is 5% of the property price for most mainstream UK residential mortgages. 10% opens up materially more products and better rates. 15% is the sweet spot for first-time buyers who want decent rates without saving for years. 25% or more unlocks the best rates available.

Is a 5% deposit enough?

Yes, a 5% deposit is workable for most mainstream lenders, but the rate you'll pay is materially higher than at 10% or 15%. On a £300,000 property, the difference between a 95% and 90% LTV mortgage can be 0.4–0.8 percentage points, which is £700–£1,400 a year on a 25-year mortgage.

What is a good deposit size?

15% is the practical sweet spot for first-time buyers — enough to access most mainstream rates without spending a decade saving. 25% gets you the best rates on the market. Anything above 25% has diminishing returns on rate; the money is often better off elsewhere unless it's truly surplus.

What is LTV?

LTV stands for loan-to-value — the size of your mortgage as a percentage of the property price. A 90% LTV mortgage means you're borrowing 90% and putting in 10% as deposit. Lower LTV = lower risk for the lender = lower interest rate for you.

Can I use a gifted deposit?

Yes — gifted deposits from immediate family are widely accepted by UK lenders. You'll need a written gifted-deposit letter signed by the giver confirming the money is a gift, not a loan, and that they have no interest in the property. Some lenders will also ask for proof of the giver's funds.

Can I buy a house with bad credit?

Yes, but expect fewer product options and higher rates. Recent missed payments, defaults or CCJs in the last 2–3 years will narrow your choices to specialist lenders. A larger deposit (typically 15%+) materially improves your odds because it reduces the lender's risk.

Does a bigger deposit reduce monthly repayments?

Yes, in two ways. A bigger deposit means a smaller mortgage, so even at the same rate your monthly payment is lower. And a lower LTV typically unlocks a lower interest rate, which compounds the saving. On £300,000 at 25 years, going from 95% to 75% LTV can save £200–£300 a month.

What is a Lifetime ISA (LISA) and should I use one?

A LISA is a tax-free savings account for 18–39 year olds. You can put in up to £4,000 a year and the government adds a 25% bonus — up to £1,000 a year free. Funds can be used for a first home up to £450,000, provided the LISA has been open for at least 12 months before purchase. If you qualify, a LISA is almost always worth opening.

Once you know your deposit target

Already saving and want to map out the timeline in detail (with LISA bonus support)? The deposit savings goal calculator models month-by-month contributions to a specific target. For income-side planning, PayslipCheck explains your take-home pay line by line. For longer-form deposit strategy, PennyWise Finance has a first-time buyer savings guide.

Calculation rules last reviewed: 24 May 2026.