Deposit gap
A deposit gap is the shortfall that can appear when a lender values a property below the agreed price and lends against the lower valuation.
Last verified: 10/03/2026
Definition
A deposit gap is the shortfall that can appear when:
- you agree a purchase price, but
- the lender values the property lower, and
- the lender will only lend based on the lower valuation
Why it matters
If you still want to buy at the agreed price, a deposit gap often means you need more cash up front (or the price needs revisiting).
Related terms
- Downvaluation
- LTV