Deposit guide
How much deposit do you need for a house in the UK?
The short answer is that you can sometimes buy with a small deposit, but the practical answer depends on the monthly payment, the rate you can access, and how much breathing room you want left.
What a bigger deposit really changes
A bigger deposit does more than reduce the amount you need to borrow. It can also improve loan-to-value, widen the products available to you, and reduce the monthly payment enough to make the purchase feel more comfortable.
If you want to test the effect directly, start with the mortgage affordability calculator.
A practical first-time buyer view
- A smaller deposit may get you onto the ladder sooner, but usually means higher loan-to-value and less room for rate shocks.
- A larger deposit can lower the payment enough to make the budget easier to live with month after month.
- If saving longer lets you borrow less aggressively, it can improve both affordability and peace of mind.
Common questions
Is 5% enough for a house deposit in the UK?
Sometimes, but it is often the edge of the market rather than the comfortable middle. A 5% deposit can mean fewer products, higher rates, and less buffer if the budget is already tight.
Is a 10% deposit better than 5%?
Usually yes, because it improves loan-to-value and often makes both rates and monthly payments more manageable. The practical gain can be bigger than the headline percentage suggests.
Should you use all your savings as the deposit?
Not always. Many buyers feel safer keeping some cash back for fees, moving costs, and early surprises rather than pushing every last pound into the deposit.