How Much Deposit Do You Need to Buy a House?

If you’re saving for a home, one of the biggest questions is: how much deposit do you need to buy a house?

The answer depends on your credit history, property type, and which scheme or lender you use. While the traditional advice says you’ll need 10% or more, the reality in today’s market is more flexible — with options starting from 0% for shared ownership, and as little as 2% to 2.5% with some specialist lenders.

At Mortgage Bridge, we help buyers with all types of circumstances — from first-time buyers with clean credit to clients with previous credit issues — find the most suitable route onto the property ladder.

Here’s a full guide to how deposit sizes work in 2025, and the genuine low and no-deposit options available right now.

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Why Lenders Require a Deposit

Your deposit is your initial contribution toward the property’s purchase price. The remainder is borrowed through your mortgage.

Lenders use the deposit size to calculate your loan-to-value (LTV) — the percentage of the property value you’re borrowing.

For example:

• Property price: £200,000
• Deposit: £10,000
• Mortgage amount: £190,000
• Loan-to-value: 95%

The lower your LTV, the lower the perceived risk for the lender — which often leads to better rates.

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The Standard Deposit Amount

For most buyers with a stable income and clean credit, the standard deposit required is 5% of the property’s purchase price.

Example:

If you’re buying a £250,000 property:

• 5% deposit = £12,500
• 10% deposit = £25,000

However, if you have a smaller deposit, or some credit issues, there are new and flexible options that could still make buying possible.

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0% Deposit: Shared Ownership Mortgages

For those struggling to save a deposit, shared ownership can be a realistic way to buy your first property — and there are now 0% deposit options available.

With shared ownership, you buy a share (typically 25–75%) of a property and pay rent on the rest. Your mortgage is only based on the share you buy.

Some lenders are now offering 0% deposit shared ownership mortgages, meaning you don’t need to contribute cash upfront.

💡 However, you’ll need to check that your housing association accepts a 0% deposit arrangement, as some require a minimum contribution.

Who it’s best for:

• First-time buyers struggling to save
• Households with strong rental payment history
• Buyers earning below standard lending thresholds

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0% Deposit: Rental History Mortgages

One of the newest innovations in the market allows tenants to buy without a deposit by using their rental payment history as proof of affordability.

Lenders offering these products look at your record of on-time rent payments (usually over 12–24 months) and use it to assess your ability to manage a mortgage.

You may qualify if you:

• Have rented the same property for at least 12 months
• Can prove consistent rent payments on time
• Meet the lender’s income and credit requirements

💡 This option can work particularly well for buyers with clean credit and stable employment, even without savings.

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2% Deposit Mortgages: Clean Credit

A few specialist lenders now offer 2% deposit mortgages for buyers with clean credit and steady income.

These deals are limited but can be ideal for those who have managed their finances well but haven’t yet built large savings.

Example:

For a £200,000 property, a 2% deposit is just £4,000.

These products are often linked to lender-specific affordability checks and may have slightly higher interest rates initially — but they can help buyers get on the property ladder sooner.

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£5,000 Deposit Mortgages

Some mainstream and specialist lenders allow applications with a minimum £5,000 deposit, regardless of the property price (up to certain loan-to-value limits).

These are often ideal for first-time buyers with clean credit purchasing lower-value properties or using government-backed schemes.

Example:

If you’re buying a £180,000 home with a £5,000 deposit, your loan-to-value is around 97% — achievable with select lenders when affordability and credit are strong.

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2.5% Deposit Mortgages: For Bad Credit

If you’ve had credit issues in the past — such as missed payments, defaults, or a debt management plan — some specialist lenders are now offering mortgages from as little as 2.5% deposit.

These products are specifically designed for buyers rebuilding their credit history and may have slightly higher initial rates.

Example:

For a £200,000 home:

• 2.5% deposit = £5,000
• 97.5% mortgage = £195,000

While rates are higher than for clean credit applicants, this option can make home buying accessible again for those with past financial difficulties.

💡 Once your credit improves, you can usually remortgage after 2–3 years for a better deal.

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Deposit Options Summary

Situation	Typical Deposit Required	Notes
Clean credit, good income	5%	Widely available from major lenders
No deposit (Shared Ownership)	0%	Must be approved by housing association
No deposit (Rental History)	0%	Requires 12+ months of rent payments
Clean credit, limited savings	£5,000 or 2%	New low-deposit lender products available
Bad credit (defaults, DMP, CCJ)	2.5–10%	Specialist lenders assess on case-by-case basis
Self-employed or complex income	5–10%	Proof of income stability required

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How to Strengthen Your Application

Even if you’re applying for a low or no-deposit mortgage, lenders will still review your overall financial picture carefully. You can improve your approval chances by:

1. Checking your credit report with Checkmyfile to correct errors and review all four agencies.
2. Paying all bills on time for at least 6–12 months.
3. Reducing existing debts before applying.
4. Registering on the electoral roll if eligible.
5. Avoiding new credit applications before your mortgage application.

💡 We cover these steps in more detail in our guide on improving your credit before applying.

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How Mortgage Bridge Can Help

At Mortgage Bridge, we work with both mainstream and specialist lenders to match you with the best options for your situation — whether you have clean credit, complex income, or previous credit issues.

We can:

• Check which low or no-deposit options you qualify for
• Guide you through shared ownership and housing association approvals
• Find lenders offering 2–2.5% deposit deals for bad credit cases
• Handle your full application and lender communication

Our goal is simple — to help you buy your home sooner, with the right deal for your circumstances.

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Final Thoughts

If you’ve been asking yourself how much deposit do you need to buy a house, the answer is: it depends — but probably less than you think.

From 0% shared ownership and rental history options, to £5,000 and 2% low-deposit mortgages, and 2.5% specialist bad credit deals, there are now real choices available for a wide range of buyers.

At Mortgage Bridge, we’re here to help you explore your best route forward — whether that means buying now or preparing to qualify soon.

Let’s explore your options together.