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

18.07.2025

If you’re thinking about buying your first home in the UK, one of the first (and biggest) questions is: how much deposit do I need? The short answer: at least 5 %. But the full picture depends on your situation — and how soon you want to get your keys.

In this article, we’ll break it down — simply, clearly, and in plain English. No jargon, no pressure.

1. Minimum deposit: 5 % of the property price

Most UK lenders require a minimum of 5 % deposit. That means if you’re buying a home worth £250,000, you’ll need at least £12,500 saved.

Tip. The higher your deposit, the better your mortgage deal usually is.

2. What’s the difference between 5 %, 10 %, and 15 %?

Here’s how it works:

5 % deposit — possible, but fewer lenders and slightly higher interest rates.
10 % deposit — more lender options, better rates.
15…20 % deposit — often unlocks the best deals.
25 %+ deposit — very competitive rates, especially for buy-to-let.

A bigger deposit reduces your monthly payments and may help if your credit isn’t perfect.

3. Where can the deposit come from?

Most lenders accept:

Personal savings.
Gifts from family (with a signed letter).
Sale of another property.
In some cases, help from government schemes.

Be ready to show proof of source — especially if funds come from abroad.

4. First-time buyer help: are there any schemes?

Yes, if you’re a first-time buyer, you might qualify for help. Some popular options:

First homes scheme — new-builds at 30…50 % discount (available in some areas).
Shared ownership — buy a portion of the property and pay rent on the rest.
Lifetime ISA — government adds 25 % to your savings (up to £1,000 / year) funds are to be used towards the purchase of your home

These schemes can lower the deposit you need — but come with special rules. We’ll help you check if you’re eligible.

5. How to save smarter (and faster)

Some quick tips from our clients:

Set up a dedicated savings account — so you’re not tempted to spend it.
Use budgeting apps to track spending.
If you’re employed, set up auto-transfers on payday.
Use a Lifetime ISA if you’re under 40.

Remember: even small amounts add up — consistency is key.

6. What makes Smart City Mortgages different?

We don’t just tell you how much you need — we help you build a plan to get there. Our advisors speak your language and explain every step clearly.

Deposit too low? We’ll show you alternative options.
Saving from abroad? We’ll guide you on documents and transfers.
Not sure what’s realistic? We’ll give you a clear, honest assessment.