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How much deposit do I need (UK)? 5% vs 10% vs 15% with examples

How much deposit do you need to buy a home in the UK? Learn how LTV works, what 5%, 10% and 15% deposits mean, and see worked examples.

Published: 11/03/2026 • Last verified: 11/03/2026

Summary

In the UK, the “right” deposit is the one that:

  • gets you access to a mortgage you can afford,
  • fits the type of property you want to buy,
  • and leaves you with enough money for the other buying costs (legal fees, surveys, moving costs and so on).

Some mortgages are available with a 5% deposit (95% loan‑to‑value, or 95% LTV), but deals and eligibility vary by lender and by your circumstances. A 10% or 15% deposit can open up more choices and sometimes better rates — but it’s not always the fastest or best path for every buyer.

Use the deposit calculator to sanity‑check numbers as you read:

This guide is general information only. It is not financial advice, and mortgage criteria vary between lenders.

Key terms (quick definitions)

  • Deposit: the upfront amount you pay towards the purchase price. The mortgage covers the rest.
  • LTV (loan‑to‑value): the percentage of the property’s value you borrow. A £180,000 mortgage on a £200,000 home is 90% LTV.
  • Equity: the part of the property you own outright (your deposit plus any capital you repay over time).

Helpful glossary links:

How a deposit works (and why lenders care)

When you buy a home, you usually pay:

  1. Your deposit (your upfront cash).
  2. A mortgage for the rest.

Lenders look at your deposit mainly because it changes the risk:

  • With a bigger deposit, you borrow less compared to the home’s value (lower LTV).
  • With a smaller deposit, you borrow more (higher LTV).

If property prices fall, higher‑LTV borrowing can mean the lender has less “buffer” before the property is worth less than the mortgage.

A quick LTV table (5%, 10%, 15%)

To keep things simple, here’s how the three deposit sizes in the title translate into LTV:

DepositLTV (approx.)What it usually means
5%95%Lower upfront cash, fewer deals, stricter criteria is common
10%90%More choice than 95% LTV in many markets
15%85%Often more choice again; may reduce borrowing stress

The exact deal availability changes over time. For example, government schemes and lender product ranges can affect whether 95% LTV mortgages are widely available.

Is a 5% deposit “allowed” in the UK?

Yes — some lenders offer mortgages at 95% LTV (which is a 5% deposit). The government has also run a Mortgage Guarantee Scheme aimed at supporting high‑LTV lending (subject to lender participation and eligibility criteria). Availability and pricing change over time, and some property types can need more than five percent.

If you’re aiming for a 5% deposit, two practical questions matter more than anything else:

  • Can you pass affordability checks at the loan size you need?
  • Is your chosen property type acceptable to the lender at that LTV?

If either answer is “no”, you may need a bigger deposit, a cheaper property, or a different plan.

What else you need money for (not just the deposit)

A common mistake is treating the deposit as the only cash you need. In practice, you may also need money for:

  • solicitor / conveyancing fees,
  • a survey (if you choose one) and lender valuation (sometimes),
  • mortgage fees (arrangement/booking fees),
  • moving costs,
  • insurance and initial setup costs.

If you spend every pound on the deposit, you can end up short for costs that appear late in the process.

Next step guide:

Worked examples (5%, 10%, 15%)

These examples are illustrative. Use your own property price to get exact numbers:

Example 1: £200,000 purchase

5% deposit

  • Deposit: (£200,000 × 0.05 = £10,000)
  • Mortgage needed: £190,000
  • LTV: 95%

10% deposit

  • Deposit: (£200,000 × 0.10 = £20,000)
  • Mortgage needed: £180,000
  • LTV: 90%

15% deposit

  • Deposit: (£200,000 × 0.15 = £30,000)
  • Mortgage needed: £170,000
  • LTV: 85%

What changes as the deposit increases:

  • you borrow less,
  • you reduce your LTV band,
  • and you often have more deal choices.

Example 2: £300,000 purchase

5% deposit

  • Deposit: £15,000
  • Mortgage needed: £285,000
  • LTV: 95%

10% deposit

  • Deposit: £30,000
  • Mortgage needed: £270,000
  • LTV: 90%

15% deposit

  • Deposit: £45,000
  • Mortgage needed: £255,000
  • LTV: 85%

This is where affordability often bites: the difference between needing a £285,000 mortgage vs a £255,000 mortgage can be meaningful.

If you want a quick reality check:

Example 3: “I have £25,000 saved — what price range does that cover?”

If your deposit is £25,000:

  • At 10% deposit, that supports a purchase price of about £250,000.
  • At 5% deposit, it could support a purchase price of about £500,000 (but a 95% LTV mortgage at that loan size may not be affordable or available).

This is why the deposit percentage is only half the story — the mortgage size still has to work.

Common mistakes (and how to avoid them)

Here are common deposit mistakes we see (and the safer framing):

  • Focusing only on the deposit: budget for buying costs too (legal, surveys, fees).
  • Assuming 5% is always available: treat 95% LTV as “sometimes available”, and check criteria early.
  • Ignoring LTV bands: moving from 95% to 90% LTV can change deal availability.
  • Forgetting proof of deposit: lenders often want to understand where the deposit came from (savings vs gift).
  • Not thinking about rate changes: a deal that looks affordable today may not stay that way if rates rise later.
  • Mixing up deposit size and affordability: a bigger deposit can help, but income and outgoings still matter.

What to do next

Related glossary:

Sources