The size of your deposit is one of the most important factors in your home purchase — it affects your mortgage rate, monthly payment and total cost. Here is everything you need to know.
| Deposit % | LTV | Availability | Typical Rate Benefit |
|---|---|---|---|
| 5% | 95% | Available via Mortgage Guarantee Scheme | Highest rates |
| 10% | 90% | Widely available | Significantly better rates |
| 15% | 85% | Good choice of lenders | Good rates |
| 20% | 80% | All lenders | Very competitive |
| 25%+ | 75% | All lenders | Best available rates |
The average first-time buyer deposit in the UK is approximately £53,000 — representing around 20% of the average first-time buyer purchase price of £265,000. In London, the average deposit is considerably higher at around £130,000.
Moving from a 10% to a 25% deposit on a £250,000 purchase:
| Monthly Saving | Time to £20,000 | Time to £50,000 |
|---|---|---|
| £500/month | 3.3 years | 8.3 years |
| £750/month | 2.2 years | 5.6 years |
| £1,000/month | 1.7 years | 4.2 years |
| £1,500/month | 1.1 years | 2.8 years |
The Lifetime ISA (LISA) is the most powerful first-time buyer savings tool in the UK. You can save up to £4,000/year and the government adds a 25% bonus — up to £1,000 free money per year. Maximum property value: £450,000. Available if you are 18–39 years old.
See your monthly mortgage payment and total cost at different deposit sizes with our UK mortgage calculator.
Calculate Your MortgageYou can use a gifted deposit from family. The donor must sign a letter confirming it is a gift (not a loan) and most lenders will verify the source of funds. There is no legal limit on gifted deposits in the UK.