How Much Deposit Do You Need To Get a Mortgage?
Saving for a home deposit can feel like the hardest part of buying a property — especially when house prices keep climbing and every penny counts. The big question we hear all the time is: “How much deposit do I actually need to get a mortgage?”
The short answer? Most lenders ask for at least 5%, but the full picture is a bit more flexible than you might think. In fact, there are now options that let some buyers get a mortgage with less than 5% deposit, depending on their circumstances.
At Mortgage Bridge, we help people every day who thought buying was out of reach — from first-time buyers and single applicants to those with complex income or a patchy credit record. So, here’s everything you need to know about how deposits work, how much you’ll need, and what you can do to boost your chances of approval.
What Exactly Is a Mortgage Deposit?
Your mortgage deposit is the amount you pay upfront towards the cost of a property. The rest is covered by your mortgage loan.
Let’s say you’re buying a £200,000 home:
- A 5% deposit would be £10,000.
- A 10% deposit would be £20,000.
- A 20% deposit would be £40,000.
Lenders call this the Loan-to-Value (LTV) ratio — the percentage of the property’s value you’re borrowing. So, if you have a 10% deposit, your LTV is 90%. The lower your LTV, the lower your risk to lenders — and the better the rates you can usually access.
In short:
Bigger deposit = smaller loan = lower interest rates and monthly payments.
What’s the Minimum Deposit You Need for a Mortgage?
Most mortgage lenders ask for a minimum deposit of 5% of the property value. That means if you’re buying a £250,000 home, you’ll need at least £12,500 as a deposit.
However, that’s not the only route. Some lenders will accept lower deposits — even below 5% — for certain applicants who meet specific criteria, such as those with stable income, excellent affordability, or family support.
There are also family-assisted mortgages and guarantor-style deals that don’t require you to use a government scheme, yet still allow you to buy with little or no cash deposit. These options depend on your circumstances — such as whether a relative can provide savings as security or use equity in their property to support your application.
If your situation fits, these can be great alternatives to the standard 5% route.
Can You Get a Mortgage With Less Than 5% Deposit?
Yes — although these products are rare, they do exist.
Some specialist lenders offer 100% or 99% mortgages for applicants who meet strict criteria. For example:
- You have a strong, consistent income and excellent credit history.
- You’ve been renting for several years and can prove on-time payments.
- A family member is willing to place savings in a linked account as temporary security.
These are not government schemes — they’re private lender products designed for specific, low-risk cases.
They can be a lifeline for buyers who are financially stable but haven’t been able to save a large deposit yet. If this sounds like you, we can check whether you’re eligible.
How Much Deposit Do First-Time Buyers Need?
For first-time buyers, the sweet spot is usually between 5% and 10%.
If your credit record is clean and your finances are stable, you can often get a good deal with just 5%. If you’ve had minor credit blips or irregular income, aiming for 10% or more will open up better lender options.
Here’s a rough guide:
| Deposit Size | Loan-to-Value | Typical Borrower Profile |
|---|---|---|
| 5% | 95% LTV | First-time buyer with stable income and clean credit |
| 10% | 90% LTV | First-time buyer with minor credit issues or variable income |
| 15–20% | 80–85% LTV | Applicants seeking lower rates and broader lender choice |
Remember, your deposit isn’t just about approval — it also affects your monthly repayments. A higher deposit means borrowing less, which makes your mortgage more affordable long term.
How Much Deposit Do I Need If I Have Bad Credit?
If you’ve had credit challenges — such as missed payments, defaults, CCJs, or even a previous bankruptcy — you can still get a mortgage, but the deposit requirement will likely be higher.
Specialist lenders usually look for:
- 15–20% if your issues were within the last few years
- 10–15% if your record has been clean for a while
This isn’t a punishment — it’s about showing lenders you’re serious about the commitment. A bigger deposit reduces their risk and often helps you access fairer rates sooner.
We regularly help clients with adverse credit secure mortgages by presenting their cases properly and matching them to the right lenders.
How Much Deposit Do I Need If I’m Self-Employed?
Self-employed buyers are often told they’ll need huge deposits — but that’s not true.
If your income is steady and you can show two or three years of accounts (or even just one in some cases), a 5–10% deposit is usually enough.
That said, if your earnings fluctuate or you’ve had a dip in recent years, a larger deposit around 15% can help offset the extra perceived risk.
We work with self-employed applicants daily — from contractors to company directors — and know exactly which lenders take a flexible view.
Can I Use a Gifted Deposit?
Yes, absolutely — gifted deposits are very common, especially among first-time buyers.
A gifted deposit is when a family member gives you the money for part or all of your deposit. The key is that it must be a genuine gift, not a loan that you’ll repay later.
Lenders usually require a simple gift letter confirming this, along with proof of where the money came from.
It’s a brilliant way for parents or relatives to help without taking on the mortgage themselves — and it can often make the difference between buying now and waiting another year.
What Other Deposit Sources Can Lenders Accept?
Alongside savings and gifts, lenders may accept:
- Inheritance funds
- Equity from selling another property
- Savings from ISAs or LISAs (Lifetime ISAs) — especially useful for first-time buyers, as the government adds a 25% bonus.
Each lender has slightly different rules, but we’ll guide you through what’s acceptable and how to present it clearly in your application.
How Can I Save for a Bigger Deposit Faster?
Saving a deposit feels tough, but small changes make a huge difference over time. Try these steps:
- Automate your savings – Set up a standing order into a separate “house fund” account every payday.
- Use a Lifetime ISA (LISA) – Get a 25% government top-up on savings up to £4,000 per year.
- Cut unnecessary subscriptions and expenses – Even £50 a month adds up.
- Pay down debts – Reducing existing credit improves both affordability and your credit score.
- Boost your income – Freelance work or a side hustle can accelerate your savings pot.
And remember: the goal isn’t perfection. Even a modest increase in your deposit can open up more lender options.
Do Bigger Deposits Always Mean Better Mortgage Rates?
Generally, yes — but only up to a point.
Lenders often improve their interest rates at specific LTV thresholds, such as 90%, 85%, 80%, and 75%. Once you cross into a lower bracket, you’ll typically access cheaper rates.
However, saving beyond certain points (for example, from 25% to 30%) may not make much extra difference. We’ll help you calculate where the best balance lies between saving time and securing a better rate.
Are There Any Mortgages That Don’t Need a Cash Deposit?
There are a few no-deposit mortgage options available, but they depend on your personal circumstances.
These include:
- Family security mortgages, where a family member provides savings as collateral.
- Professional mortgages, for certain careers (like doctors or solicitors) where lenders may accept lower deposits due to stable earnings.
- Track record mortgages, for renters who can prove 12 months of on-time rent payments.
These don’t rely on government schemes — they’re specific products designed for certain buyer types. If you’re unsure whether you qualify, we can check the latest lender criteria for you.
What About Buy-to-Let Mortgages?
If you’re buying an investment property, deposit requirements are higher.
Most buy-to-let lenders ask for at least 25% deposit, although some may go down to 20% if the rental income comfortably covers the mortgage payments.
A larger deposit can also help you access lower interest rates and boost your potential return on investment.
What If My Bank Has Already Said No?
If your bank has declined your mortgage due to your deposit size or credit score, don’t panic — that doesn’t mean your options are gone.
High-street banks tend to have stricter rules, but there are specialist lenders who take a much more flexible view.
At Mortgage Bridge, we regularly help people who’ve been told “no” elsewhere secure approval — often with better terms than they expected.
How Mortgage Bridge Can Help You
At Mortgage Bridge, we know saving for a deposit is one of the biggest challenges buyers face — and we also know it’s not the whole story.
Whether you’ve got 5%, less than 5%, or a little more, we’ll help you:
- Understand exactly what deposit size you’ll need for your circumstances.
- Explore lower deposit mortgage options that don’t rely on government schemes.
- Find lenders who look beyond the surface of your credit file or income type.
- Make your application as strong as possible, from start to finish.
We take the stress out of the process and guide you through every step — so you can focus on planning your move, not panicking about your deposit.
Final Thoughts
Your deposit doesn’t have to be perfect to get started — and it might not need to be as big as you think.
Most buyers can secure a mortgage with just 5%, and in some cases, even less. With the right preparation, advice, and lender match, homeownership could be closer than it feels right now.
At Mortgage Bridge, we’ll help you explore every route to get there. If you’d like to find out how much deposit you really need — and what lenders could offer you today — let’s talk through your options together.