How Much Deposit Do You Need for a Mortgage? UK Guide

Buying a home is exciting, but before you start browsing properties, you need to know how much deposit do you need for a mortgage. Your deposit size impacts not only the homes you can afford but also your mortgage rates, monthly repayments, and the likelihood of approval.

In this guide, we’ll break down deposit requirements in the UK, what lenders look for, and how to prepare for both first-time and second mortgage purchases.

The Basics: How Much Deposit Do You Need?

In the UK, most lenders require a minimum deposit of 5% of the property’s value. This means if you’re buying a £200,000 home, you’ll need at least £10,000 saved. However, a larger deposit — 10%, 15%, or even 20% — can get you better rates.

For example:

Property Price	5% Deposit	10% Deposit	20% Deposit
£200,000	£10,000	£20,000	£40,000
£300,000	£15,000	£30,000	£60,000

Some buyers also explore buying through a limited company for investment purposes, but that usually requires bigger deposits.

How Much Do You Need for a Mortgage Deposit on Specific Property Values?

If you’re wondering how much deposit do you need for a 300k mortgage, the numbers look like this:

5% Deposit → £15,000
10% Deposit → £30,000
20% Deposit → £60,000

Your lender will assess your income, credit history, and existing debt before confirming your exact deposit requirement.

How Much Deposit Do You Need for a Second Mortgage?

When buying a second property — whether as a holiday home, rental, or investment — most lenders require a larger deposit. Typically, you’ll need 25% or more of the property’s value.

For example, if you’re buying a £250,000 second property, expect to put down £62,500 or higher. This is similar to the process explained in gifting a buy-to-let property, where deposit rules are stricter.

Why a Larger Deposit Is Better

A bigger deposit gives you access to:

Lower interest rates
Smaller monthly repayments
More mortgage products to choose from
Stronger negotiating power with sellers

It can also make you a more attractive buyer, especially in competitive housing markets.

Tips for Saving Your Mortgage Deposit

Automate savings → Set up a direct debit to your savings account.
Cut unnecessary expenses → Pause subscriptions and reduce non-essential spending.
Use government schemes → Help to Buy ISAs or Lifetime ISAs can boost savings.
Increase income → Take on part-time work or freelance gigs.

If you’re also thinking about the difference between freehold vs leasehold, note that service charges and lease fees can impact your budget — so factor that in.

Hidden Costs Beyond the Deposit

Many buyers focus on the deposit but forget about additional costs:

Stamp Duty (unless exempt)
Valuation & Survey Fees
Conveyancing Fees
Moving Costs
Mortgage Arrangement Fees

You can learn more about legal fees in property transactions in guides such as Deed of Transfer Property.

Buying Abroad: How Much Do You Need for a House Deposit NZ?

If you’re considering a purchase in New Zealand, deposit requirements differ. Most banks require 20% for an existing home and 40% for investment properties. That’s significantly higher than many UK lenders.

How Much Money Do You Need for a House Deposit in the UK?

In summary:

First-time buyers → 5%–10% minimum
Standard purchases → 10%–20% for better rates
Second mortgages & buy-to-let → 25%+

Before committing, use an online calculator to estimate repayments and deposit needs. And if you’re unsure, speak with a mortgage broker — their guidance can be as crucial as knowing why sellers use a guide price.

Expert Insight

“Your deposit isn’t just about meeting lender requirements — it’s your ticket to better mortgage deals, stronger bargaining power, and long-term financial security.” – Expert Awesome Agents

How Much Deposit Do You Need for a Mortgage? A Complete UK Guide