Quick answer
The minimum deposit for most UK mortgages is 5% of the property price (95% LTV). But deposit size affects more than whether a lender will say yes — it changes how much you can borrow. Many lenders increase their maximum income multiple as your loan-to-value falls, so crossing from 95% into 90%, 85% or 80% LTV can unlock a higher multiple as well as a better rate. In practice, an extra few thousand pounds of deposit that tips you into the next band can add tens of thousands of pounds to your maximum purchase price — far more than the extra deposit itself.
The minimum deposit in 2026
5% of the purchase price (95% LTV) is the standard minimum deposit most UK mortgage lenders will accept, and a reasonable number of lenders offer 95% LTV products to first-time buyers with a clean credit history. Below 5%, your options narrow sharply to a small number of specialist or guarantor-backed products — genuine 100% mortgages exist but remain a minority, higher-rate option.
As your deposit rises past 5%, you move through a series of LTV “bands” that lenders price and underwrite differently: roughly 90%, 85%, 80% and 75% LTV are the next common thresholds. Each one typically brings lower interest rates. What is easy to miss is that several also bring a higher maximum income multiple, which is the focus of the calculator above.
Why deposit size changes how much you can BORROW (not just afford)
A basic mortgage calculator usually applies one flat income multiple — say 4.49× your income — regardless of your deposit. That is a reasonable starting estimate, but it misses something many real lender affordability models do: at lower loan-to-value ratios, where the lender is taking on less risk, several lenders will stretch to a higher multiple. A lender offering 4.49× income at 95% LTV might offer 4.75× at 90% LTV, 5.0× at 85% LTV, and higher again at 80% or 75% LTV.
The effect compounds. Not only does a bigger deposit directly add pounds to your purchase price (the deposit itself), it can also unlock a bigger mortgage on top, because the multiple applied to your income rises at the same time. That is why the “deposit staircase” in the calculator above is not a straight line — an extra few thousand pounds of deposit right at a band boundary is disproportionately valuable compared to the same amount saved in the middle of a band.
This is indicative modelling, not a quote — real lenders vary considerably in exactly where their bands sit and how large the multiple increase is, and your own affordability also depends on credit commitments, dependants, and the specific lender's full underwriting. The only way to know your real number at a real lender is to run the actual calculation, which is what the free check below does across 60+ UK lenders at once.
Is it worth waiting to save a bigger deposit?
This is a genuine trade-off with reasonable arguments on both sides, and it depends on your own circumstances — this is information to weigh up, not advice on which way to go.
The case for waiting and saving more: a bigger deposit can mean a lower interest rate, lower monthly payments, more equity as a buffer if prices fall, and — as this page covers — potentially a higher income multiple at some lenders, increasing your maximum purchase price. Waiting also gives your savings more time to grow, especially with tax-advantaged products like a Lifetime ISA.
The case against waiting: house prices and mortgage rates can move in either direction while you save, so a bigger deposit target today is not guaranteed to buy the same (or a better) home in a year or two. Renting during that time has its own cost, and does not build equity. For some buyers, getting on the ladder sooner with a 5% or 10% deposit and remortgaging onto a better rate later, as equity builds, is the more practical route.
There is no single right answer — it depends on how quickly you can realistically save, what is happening in your local market, and how much you value certainty now versus a potentially better position later.
Frequently asked questions
How much deposit do I need for a £250,000 house?
At the minimum 5% deposit, you would need £12,500 for a £250,000 house (95% LTV). At 10% you would need £25,000, at 15% you would need £37,500, and at 20% you would need £50,000. Which of these you can actually use also depends on your income — the lender's affordability calculation has to support the mortgage amount as well as the LTV allowing it.
Can I buy a house with a 5% deposit?
Yes. A 5% deposit (95% LTV) is the standard minimum most UK mortgage lenders accept, and a number of lenders offer 95% LTV products to first-time buyers with a clean credit history. You will typically see higher interest rates and fewer lender choices than at 10% or 15% deposit, and some lenders cap the income multiple more tightly at this LTV.
Is a 10% or 15% deposit better?
Neither is universally "better" — it depends on your priorities. A 15% deposit (85% LTV) typically unlocks lower interest rates and, at many lenders, a higher income multiple than 10% (90% LTV), which can mean a meaningfully bigger maximum purchase price. A 10% deposit gets you buying sooner and keeps more cash in reserve. The right answer depends on how much extra time it takes you to save the difference versus what you gain in borrowing power and rate.
Does a bigger deposit mean I can borrow more?
Often, yes — and this is the part basic calculators tend to miss. Many lenders increase their maximum income multiple as the loan-to-value ratio falls, so a bigger deposit is not just a smaller mortgage on the same purchase price — it can unlock a materially higher purchase price for the same income. In our indicative model, an extra few thousand pounds of deposit that crosses an LTV band boundary can be worth tens of thousands of pounds of extra maximum purchase price.
What about 100% mortgages?
A small number of 100% mortgages (no deposit) have reappeared in the UK market, usually with restrictions such as a guarantor, family-backed savings product, or rental-payment track record in place of a cash deposit. They are a minority option with a limited lender panel, generally higher rates than a 5%+ deposit mortgage, and stricter affordability checks — most buyers are still better served by saving at least a 5% deposit if that is achievable within a reasonable timeframe.
See your real numbers, not an indicative model
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Last updated: July 2026
