How Much Deposit Do You Need to Buy Your First Home in the UK?

Last updated:  27 July 2026

The average first-time buyer deposit in England was £61,090 in 2024, according to Halifax. In London, that figure jumped to £124,688. Numbers like these make homeownership feel impossible if you’re earning £30,000 and paying £1,200 a month in rent. But here’s what the headlines skip: 22% of first-time buyers in December 2025 completed with deposits under £20,000. Some bought with £5,000. A handful bought with nothing at all.

The minimum deposit most UK lenders accept is 5%. On a £225,000 property, that’s £11,250. Not pocket change, but a different planet from £61,000. The gap between the average deposit and the minimum deposit is vast, and understanding where you sit in that range determines which lenders, rates, and schemes are available to you. This guide breaks that down.

What Is the Minimum Deposit for a First-Time Buyer?

5% of the property price is the standard minimum deposit accepted by most UK lenders. On a £200,000 home, that’s £10,000. On a £250,000 home, £12,500. Halifax, NatWest, Nationwide, Barclays, HSBC, Santander, and Virgin Money all offer 95% LTV mortgages for first-time buyers, and there are currently over 530 different 5% deposit products on the market according to Moneyfacts. That’s almost double the number available two years ago.

Some lenders go lower. In May 2026, Lloyds and Halifax launched a £5,000 deposit mortgage for first-time buyers, available on properties up to £300,000 at a five-year fixed rate of 5.89%. No product fee, no requirement for family help. The catch: no gifted deposits allowed, no new-builds, no shared ownership, and the loan-to-income ratio caps at 4.5x. For buyers with clean credit who can afford the repayments, it cuts years off the saving timeline.

What Is the Average First-Time Buyer Deposit in 2026?

The average deposit first-time buyers put down was £61,090 in 2024 and the average deposit percentage was 20% of the purchase price. But that average masks enormous regional variation. London buyers averaged £124,688. Buyers in the North East averaged around £25,000. The average is pulled up by a small number of buyers putting down very large deposits, often funded by family.

Nationwide’s own data tells a more useful story: the typical first-time buyer needs close to six years to save a 10% deposit. In London and the South East, it takes longer. In the North of England, Scotland, and Northern Ireland, the timeline is considerably shorter because property prices are lower. Average deposit by region paints a clearer picture than the national figure:

Region	Avg FTB House Price	5% Deposit	10% Deposit
London	£472,000	£23,600	£47,200
South East	£299,000	£14,950	£29,900
East of England	£265,000	£13,250	£26,500
North West	£185,000	£9,250	£18,500
North East	£139,000	£6,950	£13,900

Use our mortgage calculators to see exactly how deposit size changes your monthly payments on a specific property price.

How Does Deposit Size Affect Your Mortgage Rate?

Every percentage point of deposit you add improves the rate you’re offered. Lenders price mortgages in LTV bands: 95%, 90%, 85%, 80%, 75%, 60%. Each time you cross into a lower LTV band, the interest rate drops. The difference between a 95% LTV rate and an 85% LTV rate on the same property can be 0.5% to 1.0% per year. On a £200,000 mortgage over 25 years, that 0.5% difference works out to roughly £55 per month, or £16,500 over the full term.

The sweet spot for most first-time buyers is 10%. It moves you from the 95% LTV band into the 90% band, which is where lender choice expands significantly and rates start becoming competitive. If you can push to 15%, even better. But the jump from 5% to 10% makes the single biggest difference. If you’re sitting at 7% or 8%, it’s often worth waiting another few months to hit 10% rather than buying at 95% LTV.

Which Lenders Accept 5% Deposits or Less?

The mainstream high street lenders offering 95% LTV first-time buyer mortgages include Halifax, NatWest, Nationwide, Barclays, HSBC, Santander, Lloyds Bank, TSB, and Virgin Money. You’re not short of options at 5%. Building societies including Skipton, Leeds, and Coventry also offer competitive 95% LTV products.

Below 5%, the list shrinks but it isn’t empty:

Lloyds/Halifax £5,000 Deposit Mortgage (launched May 2026): properties up to £300,000, 5-year fixed at 5.89%, no gifted deposits allowed, no new-builds, LTI capped at 4.5x.

Yorkshire Building Society 99% LTV: just 1% deposit needed, though criteria are strict and rates are higher than standard 95% products.

Nationwide Helping Hand: lend up to 6x income for first-time buyers earning £35,000+ (single) or £55,000+ (joint), which effectively lets buyers stretch affordability further even with a small deposit.

Barclays Family Springboard: 100% LTV, no buyer deposit required, but a parent or family member deposits 10% of the purchase price into a Barclays savings account for 5 years. It’s technically no deposit for the buyer.

Lloyds Lend a Hand: similar to Barclays, 100% LTV, parent deposits 10% in a Lloyds savings account as security.

If you’re self-employed, deposit expectations are typically higher. Most lenders want at least 10% from self-employed buyers, and some want 15%, because income verification is more complex. A whole-of-market broker will know which lenders are most flexible.

Can You Buy a Home With No Deposit at All?

Yes, but only through specific products. Skipton Building Society’s Track Record Mortgage offers 100% LTV to renters with 12+ months of continuous rent payments, where the proposed mortgage payment is equal to or less than the rent they’re currently paying. No family help needed. No deposit at all. The rate is currently around 5.85% on a 5-year fix.

The family-backed routes (Barclays Family Springboard and Lloyds Lend a Hand) also require no deposit from the buyer, but do require a parent or family member to lock away 10% of the purchase price in a linked savings account. The family gets their money back after five years, with interest, assuming all mortgage payments are made on time.

100% mortgages carry a real risk: negative equity. If property prices drop even 5% after purchase, you owe more than the home is worth. That doesn’t matter day-to-day, but it matters enormously if you need to sell or remortgage within the first few years. If you have any ability to save even a small deposit, it provides a buffer.

Can Someone Else Provide Your Deposit?

Yes. A gifted deposit from a parent, grandparent, or close family member is accepted by virtually every UK lender. The gift must be genuinely non-repayable and the giver must sign a gifted deposit declaration confirming they have no financial interest in the property.

In December 2025, 22% of first-time buyers completed with deposits under £20,000. A large portion of those were only possible because of family help. If your parents can gift you £10,000 on top of the £5,000 you’ve saved yourself, you’ve gone from a 5% deposit to a 10% deposit on a £150,000 property, which drops your rate and opens more lender options. The Lloyds £5,000 deposit mortgage doesn’t allow gifted deposits, but the standard 95% LTV products from every other major lender do.

A Joint Borrower Sole Proprietor (JBSP) mortgage is another route where parents help without gifting cash. Their income boosts your borrowing power, they go on the mortgage but not the property title, and they don’t trigger the additional SDLT surcharge.

Realistic Ways to Build Your Deposit Faster

Lifetime ISA (LISA): if you’re under 40, you can save up to £4,000 per year and the government adds a 25% bonus, meaning you get up to £1,000 free per year. Over four years, that’s £20,000 saved with £4,000 in bonuses on top. The money can only be used for a first home purchase (up to £450,000) or retirement. Withdrawing for any other reason triggers a 25% penalty on the full amount, which actually costs you more than the bonus you received.

Regular saver accounts: some banks offer 5% to 7% interest on regular monthly savings, though typically capped at £250 to £500 per month. It’s marginal compared to LISA, but every extra £50 per month compounds.

Reduce your rent: easier said than done, but moving back with family for 12 to 18 months can fast-track your deposit by hundreds of pounds per month. Not an option for everyone, but if it is, it’s the single fastest way to close the gap.

Check your employer: some employers offer salary sacrifice schemes, homebuying assistance, or interest-free loans for deposits. NHS workers, teachers, and civil servants sometimes have access to key worker housing schemes with reduced deposits.

Do First-Time Buyers Pay Stamp Duty?

In England and Northern Ireland, first-time buyers pay no Stamp Duty Land Tax (SDLT) on properties up to £300,000. On properties between £300,001 and £500,000, you pay 5% on the portion above £300,000 only. Above £500,000, standard rates apply and you lose the first-time buyer relief entirely.

Worked example: buy a £350,000 home as a first-time buyer and you pay 5% on the £50,000 above £300,000, which is £2,500. Buy the same property as a non-first-time buyer and the SDLT bill jumps to £7,500. That £5,000 saving is effectively money towards your deposit or moving costs.

Scotland has the Land and Buildings Transaction Tax (LBTT) with different thresholds. Wales has Land Transaction Tax (LTT). Check the specific thresholds for your nation before budgeting. Full details at GOV.UK’s SDLT rates page.

How UK Mortgage Finder Can Help

Your deposit size determines which lenders, rates, and products are available to you. A £5,000 deposit, a £15,000 deposit, and a £30,000 deposit open three completely different sets of options. UK Mortgage Finder connects you with FCA-regulated whole-of-market brokers who compare across all of them, including the new low-deposit products from Lloyds and Halifax, the Skipton Track Record Mortgage, and family-backed options like Barclays Family Springboard. The service is free and there’s no obligation to proceed.

Frequently Asked Questions

Can I buy a house with a 5% deposit UK?
Yes. Over 530 mortgage products are currently available at 95% LTV from lenders including Halifax, NatWest, Nationwide, Barclays, HSBC, and Santander. On a £225,000 home, a 5% deposit is £11,250. Some products now accept even less.

Is a 10% deposit enough for a first-time buyer?
More than enough. A 10% deposit moves you from the 95% LTV band into the 90% band, which unlocks better rates, more lender choice, and lower monthly payments. It’s the sweet spot where the biggest rate improvement happens.

How long does it take to save a deposit UK?
Nationwide estimates close to six years to save a 10% deposit on average. Using a Lifetime ISA with the government bonus, saving £350 per month gets you to £21,000 in four years (including the 25% bonus). Family help through a gifted deposit can cut the timeline significantly.

Can I use a Lifetime ISA for my deposit?
Yes. You can save up to £4,000 per year and receive a 25% government bonus (up to £1,000). The property must be worth £450,000 or less and you must be a first-time buyer. Withdrawing for any purpose other than a first home or retirement triggers a 25% penalty on the full amount.

Do I need a deposit for shared ownership?
You need 5% to 10% of the share you’re buying, not the full property price. On a 25% share of a £300,000 home, your deposit could be as low as £3,750. Full details in our shared ownership mortgage guide.

Does a gifted deposit count as my own savings?

Lenders treat a gifted deposit as legitimate deposit funds. However, some specific products (like the Lloyds £5,000 Deposit Mortgage) don’t accept gifted deposits. Standard 95% LTV mortgages from every other major lender accept them with a signed gift letter.

Can I get a mortgage with no deposit?
Yes, through specific products. Skipton Building Society’s Track Record Mortgage offers 100% LTV to renters with 12+ months of continuous rent history. Barclays Family Springboard and Lloyds Lend a Hand offer 100% LTV with family backing.

What other costs do first-time buyers need to budget for?

Beyond the deposit: solicitor/conveyancer fees (£1,000 to £2,500), survey (£400 to £1,000), mortgage broker fee (often free), removal costs, and building/contents insurance. Budget an extra £3,000 to £5,000 on top of your deposit as a minimum.

Is it better to save a bigger deposit or buy sooner?
It depends on whether property prices are rising faster than you can save. If prices in your area are climbing 5% a year and you’re saving 3%, waiting can actually make things worse. A broker can run the numbers for your specific situation.

Can I get help with my deposit if I’m on a low income?
Yes. Shared ownership reduces the deposit to a fraction of the full price. The Lloyds/Halifax £5,000 deposit mortgage has no minimum income requirement beyond standard affordability. Lifetime ISA bonuses effectively give you a 25% boost on savings. And a gifted deposit from family is accepted on most products.

Important: The information in this article is for guidance purposes only and does not constitute financial advice. Product details, rates, and availability change regularly. A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. You should seek independent advice from an FCA-regulated mortgage adviser before making any financial decisions. UK Mortgage Finder introduces customers to FCA-regulated mortgage brokers and advisers.