A First-Time Buyer's Guide to Deposits in 2026

How much deposit do you actually need?

The minimum deposit for most residential mortgages in the UK is 5% of the property's purchase price. That means on a £300,000 home, you'd need at least £15,000 saved. However, the more you can put down, the better the rates you'll generally access — a 10% or 15% deposit often unlocks noticeably cheaper deals.

Where can your deposit come from?

Lenders are flexible about the source of your deposit, as long as it's legitimate and traceable. Common sources include:

• Savings — the simplest and most widely accepted.
• A gift from family — lenders will want a letter confirming it's a gift, not a loan.
• Inheritance — supported by probate documents or bank statements.
• Help to Build or Lifetime ISA — government bonuses apply, with specific rules.

Bigger deposit, better deal — but check the maths

A larger deposit reduces your loan-to-value (LTV), which usually means lower interest rates. But tying up cash in a property means it's not available for other things — moving costs, furnishings, or an emergency fund. We help you balance the deposit against keeping a sensible buffer.

Don't forget the extras

Your deposit isn't the only cash you'll need. Budget for:

• Stamp Duty (first-time buyers get relief up to £425,000 in England)
• Conveyancing and survey fees
• Mortgage arrangement and broker fees
• Moving costs

Getting a decision in principle

Before you start house hunting seriously, we recommend getting a mortgage in principle (also called an agreement in principle). It gives you a clear idea of what a lender is likely to offer, shows sellers and agents you're serious, and speeds things up once you've found a property.

How we help

We search the whole of market — over 50 lenders — to find a deal that fits your deposit, your income and your plans. We'll talk you through every option in plain English, handle the paperwork, and deal with the lender and solicitor on your behalf.

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This article is general information and not personal advice. Your home may be repossessed if you do not keep up repayments on your mortgage.