How Much Deposit Do You Need to Buy a House?
Learn how much deposit you need when buying a house, when you pay it, why it matters & smart saving tips to get on the property ladder.
Understanding how much deposit you need to buy a house is one of the biggest questions for buyers, especially if you’re getting onto the property ladder for the first time.
In simple terms, most buyers in the UK need a deposit of at least 5% of the property price, although putting down more can significantly improve your mortgage options and reduce your monthly payments.
In this guide, we explain how deposits work, how much you might need in 2026, and how to plan ahead with confidence.
What is a House Deposit and Why Does It Matter?
A house deposit is the upfront payment you make towards the cost of a property when buying a home.
It represents your share of the purchase, while the remaining amount is covered by your mortgage. The size of your deposit directly affects how much you can borrow, the mortgage rates available to you, and your overall affordability.
A larger deposit typically means:
Lower monthly mortgage payments
Access to better interest rates
A wider choice of lenders
This is why saving for a deposit is one of the most important steps in the home buying process.
How Much Deposit Do I Need to Buy a House?
The minimum deposit required in the UK is usually 5% of the property price, although many buyers aim for 10% or more.
Here’s what that looks like in real terms:
Property Price | 5% Deposit | 10% Deposit | 20% Deposit |
£200,000 | £10,000 | £20,000 | £40,000 |
£300,000 | £15,000 | £30,000 | £60,000 |
£400,000 | £20,000 | £40,000 | £80,000 |
For example, if you’re buying a £300,000 home, you would typically need at least £15,000 saved for a 5% deposit.
However, the average deposit for a house is often closer to 10%–15%, as this opens up more competitive mortgage deals.
Do You Have to Pay a 10% Deposit When Buying a House?
Not necessarily.
While a 10% deposit is common, many lenders offer mortgages with a 5% deposit, particularly for first-time buyers.
However, putting down only 5% usually means:
Higher interest rates
Fewer mortgage options
Stricter affordability checks
A 10% or larger deposit gives you more flexibility and can reduce your long-term costs.
How Deposits Affect Your Mortgage
Your deposit determines your loan-to-value ratio (LTV), which is the percentage of the property value you borrow.
For example:
5% deposit = 95% LTV
10% deposit = 90% LTV
20% deposit = 80% LTV
Lower LTV mortgages are less risky for lenders, which is why they often come with better interest rates.
In 2026, as highlighted in our property trends 2026 guide, buyers are becoming more data-led and cost-conscious, making deposit size even more important when securing a competitive deal.
How Deposit Requirements Vary Across the UK
The amount you need for a deposit depends heavily on where you’re buying.
In areas with higher property prices, such as London and the South East, deposits are naturally larger in absolute terms. In more affordable regions, such as the North East or parts of Wales, buyers may need significantly less upfront.
For example:
A 10% deposit on a £600,000 London property = £60,000
A 10% deposit on a £200,000 property elsewhere = £20,000
This is why location plays a key role in planning your budget.
Additional Costs to Budget for Beyond Your Deposit
Your deposit isn’t the only upfront cost when buying a house.
You’ll also need to factor in:
Solicitor and conveyancing fees
Survey costs
Mortgage arrangement fees
Stamp Duty (if applicable)
Removal costs
These costs can add several thousand pounds on top of your deposit, so it’s important to plan ahead.
If you’re just starting out, our guide on how first time buyers can get mortgage ready breaks down exactly what to prepare.
Is a Bigger Deposit Better?
In most cases, yes.
A larger deposit reduces the amount you need to borrow and can unlock better mortgage rates. This can save you thousands over the lifetime of your mortgage.
For example, moving from a 95% LTV mortgage to a 90% LTV mortgage can significantly lower your interest rate and monthly payments.
However, it’s important to balance saving for a deposit with your timeline. Waiting too long could mean missing out on opportunities if house prices rise.
Tips for Saving a House Deposit
Saving for a deposit can feel challenging, but there are practical ways to build it faster.
Setting a clear savings goal and timeline helps keep things on track. Many buyers also use Lifetime ISAs or other savings schemes to boost their deposit.
Cutting back on non-essential spending, increasing income where possible, and setting up automatic monthly savings can all make a difference.
Understanding the full buying process can also help you plan more effectively. You can explore our full guide on how to buy a house to see what to expect at every stage.
Final Thoughts
How much deposit you need to buy a house ultimately depends on your budget, location and long-term plans.
While 5% is the minimum for many buyers, aiming for 10% or more can give you access to better mortgage deals and lower monthly costs.
If you’re planning your next move, start by understanding what you can afford and exploring your options. You can begin by browsing properties to buy a property or speak to an expert through Purplebricks Mortgages.
And if you need guidance along the way, don’t hesitate to contact Purplebricks for support.