The short answer
Most mainstream mortgages require a minimum deposit of around 5% of the property price. But the deposit that gets you a mortgage and the deposit that gets you a good rate are two different questions — lenders price their best deals for buyers putting down 25% or more, with the rate generally improving in steps as your deposit grows.
| Deposit | Loan-to-value (LTV) | What it typically means |
|---|---|---|
| 5% | 95% | Widest access, smallest range of products, higher rates |
| 10% | 90% | More lenders available, noticeably better rates than 95% |
| 15% | 85% | Solid middle ground, rates improving steadily |
| 25% | 75% | A common threshold where the best mainstream rates start appearing |
| 40%+ | 60% | Typically the lowest rates a lender offers |
See what your deposit means in practice
Use the mortgage calculator to see how your loan amount and monthly payment change as you adjust your deposit and the rate.
Open the mortgage calculator →Why loan-to-value matters so much
Loan-to-value (LTV) is simply the loan amount as a percentage of the property price — a £270,000 loan on a £300,000 property is 90% LTV. Lenders price risk in bands around LTV, because a smaller loan relative to the property's value gives them more of a safety margin if property prices fall or you're unable to keep up repayments. This is why rates tend to jump at round-number LTV thresholds rather than improving smoothly — crossing from 91% to 90% LTV can unlock a meaningfully better rate tier, while going from 93% to 92% often makes little difference.
Worked example: how deposit size affects your rate tier
Say you're buying a £280,000 property. Here's how the loan amount changes at different deposit sizes (illustrative rates — always check current best-buy tables, since actual rates move with the base rate and change frequently).
5% deposit (£14,000)
15% deposit (£42,000)
25% deposit (£70,000)
The loan amount drops steadily as the deposit grows, but the real prize is the rate tier — a lower rate applied to a smaller loan compounds into a significantly smaller monthly payment. Try both numbers in the mortgage calculator above to see the actual difference for your situation.
Can you get a mortgage with a smaller deposit?
Yes, though with more limited choice. Some lenders offer 95% mortgages aimed at first-time buyers, and various guarantor or family-assisted schemes exist where a family member's savings or property provide additional security, effectively substituting for part of the deposit. Availability and specific scheme names change over time as government and lender initiatives come and go, so it's worth checking current options with a mortgage broker rather than assuming a scheme you've read about is still running.
Don't forget: the deposit isn't the only cash you need
A common budgeting mistake is treating the deposit as the whole upfront cost. In reality you also need to cover, separately:
- Stamp duty (or LBTT/LTT) — paid on completion, not rolled into the mortgage
- Legal fees for your solicitor or conveyancer
- Survey costs, if you commission one beyond the lender's basic valuation
- Mortgage arrangement fees, which some lenders charge upfront rather than adding to the loan
- Moving costs — removals, and any immediate work the new property needs
Use our stamp duty calculator alongside your deposit planning to see the full cash picture, not just the mortgage side of it.
Frequently asked questions
Can I get a mortgage with no deposit at all?
True 0% deposit mortgages are rare on the open market and generally only available through specific guarantor or family-assisted schemes, where a family member's savings or property provide security instead of a cash deposit. Standard mainstream mortgages almost always require at least 5%.
Does a bigger deposit always guarantee a lower rate?
Generally yes, but rates are set in tiers around round-number loan-to-value bands (95%, 90%, 85%, 75%, 60%). A deposit that just crosses one of those thresholds can unlock a meaningfully better rate; a deposit that doesn't quite reach the next threshold won't help as much as it might seem.
Do first-time buyers need a bigger deposit than home movers?
There's no rule requiring it, and the same loan-to-value tiers apply to both. In practice first-time buyers more often use smaller deposits since they haven't built up equity from a previous sale, which is exactly why higher-LTV products and support schemes are typically aimed at them.
How does my deposit interact with stamp duty?
They're separate cash requirements. Your deposit goes toward the property price and reduces your loan; stamp duty is a one-off tax paid on top, usually on completion day, out of your own funds. You need to budget for both, not just one.
This guide is for general information and doesn't constitute financial advice. Mortgage rates, LTV tiers, and available schemes change frequently — always check current products with a mortgage broker or lender before making decisions.