How Much Deposit Do You Need to Get a Mortgage? Options From 0% to 25%
One of the biggest questions for buyers is how much deposit do you need to get a mortgage. The answer depends on your financial situation, the type of mortgage you need, and your credit profile. While many buyers aim for 5% or 10% deposits, options exist from 0% to 25% depending on your circumstances.
This guide explains the deposit levels available in today’s UK mortgage market, how they affect lender choice, and what you can expect at each stage. This article provides general information only and does not offer regulated mortgage advice.
Why Deposit Size Matters
Deposit influences key areas of your application:
- Loan-to-value (LTV): How much you borrow compared to property value
- Interest rates: Higher deposits often mean better rates
- Lender flexibility: More options become available as deposit grows
- Risk level: Larger deposits reduce risk for lenders
Even a small change in deposit percentage can open up more lender options.
Can You Get a Mortgage With a 0% Deposit?
0% deposit mortgages are rare but possible in specific scenarios:
1. Family Guarantee / Security Mortgages
Some lenders allow parents to use savings or their own property as security.
Suitable when buyers have:
- Reliable income
- Limited savings
- Family willing to support
This option does not involve gifting money — instead, family support secures part of the loan.
2. Concessionary Purchases
If buying below market value (for example, from family or a landlord), the discount can act as the deposit.
Example:
Property value: £200,000
Purchase price: £170,000
Discount: £30,000 (this counts as a 15% deposit)
There are some 0% deposit options for Shared Ownership depending on your circumstances.
5% Deposit Mortgages (95% LTV)
This is the minimum deposit for most standard residential mortgages.
Who is 5% suitable for?
- First-time buyers
- Clean or near-clean credit profiles
- Stable income and good bank conduct
What lenders expect:
- Strong recent payment history
- No recent defaults or CCJs
- Clear bank statements
- Low credit utilisation
Most high-street lenders offer 95% LTV, but criteria are strict because risk is high.
10% Deposit Mortgages (90% LTV)
A 10% deposit dramatically increases lender choice.
Benefits:
- More competitive interest rates
- Greater tolerance for mild credit issues
- Better affordability outcomes
Who benefits most?
- First-time buyers with small historic credit issues
- Applicants wanting more competitive rates
- People with variable income
Even a small increase from 5% to 10% can make approval easier.
15% Deposit Mortgages (85% LTV)
Moving to 15% opens the door to many lenders, including those flexible with historic credit issues.
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Allows for:
- Settled defaults older than 1–3 years
- Past missed payments
- Minor affordability challenges
- Wider choice of mortgage products
This is often the “sweet spot” for buyers with imperfect but improving financial profiles.
20% Deposit Mortgages (80% LTV)
This level shows strong financial stability and significantly reduces lender risk.
Benefits:
- Competitive rates
- More relaxed underwriting
- Strong acceptance rates
- Better outcomes for complex income (bonus, commission, self-employed)
Lenders may also take a more flexible approach to older adverse credit.
25% Deposit Mortgages (75% LTV)
At 25% deposit, the application becomes much stronger, particularly for applicants with adverse credit or non-standard circumstances.
Ideal for:
- Applicants with multiple defaults
- Past CCJs
- Self-employed applicants with irregular income
- Those applying with recent credit issues (depending on lender)
- Buy-to-let mortgages (25% is the standard minimum)
At this level, specialist lenders become more competitive, and high-street lenders may accept older adverse issues.
Deposit Requirements Based on Credit Profile
Excellent or Good Credit
- Typically eligible for 5–10% deposits
- Lowest interest rates available
- Many lender choices
Mild Adverse Credit (older than 2 years)
- Often approved at 10–15% deposit
- Specialist lenders may offer competitive deals
Recent Adverse Credit
- Deposit requirements rise to 15–25%
- Specialist lenders likely needed
Multiple Defaults or CCJs
- 20–25% deposit usually required
- Manual underwriting plays a major role
Deposit Requirements for Different Mortgage Types
Residential Mortgages
- 5–25% depending on credit profile and income stability
Buy-to-Let Mortgages
- Typically require 25% deposit
- Some lenders accept 20% for strong profiles
- Dependent on rental income stress tests
New-Build Mortgages
- Often require 10–15% due to valuation risk
- Deposits often lower because they apply to the share you purchase
Help to Buy (historic)
- Required 5% deposit before scheme closure
- Existing Help to Buy mortgages still follow scheme rules
How to Save for a Deposit More Easily
(General Information Only)
1. Use tax-efficient savings accounts
ISAs can help accelerate savings.
2. Reduce recurring monthly expenses
Small reductions can add up over time.
3. Clear high-interest debts
This frees up money for saving and improves credit scoring.
4. Track spending carefully
Regular budgeting helps you stay on target.
Shared ownership or lower-value homes reduce deposit needs.
How Deposit Size Impacts Affordability
A higher deposit improves your mortgage prospects because:
- Monthly payments reduce
- Affordability assessments become easier
- Debt-to-income ratios improve
- Internal lender scoring may increase
Lenders view higher deposits as a sign of financial stability.
Common Buyer Scenarios and Deposit Expectations
Scenario 1: First-time buyer with clean credit
Likely eligible for 5–10% deposit options.
Scenario 2: Applicant with old, settled defaults
May need 10–15% deposit depending on lender.
Scenario 3: Applicant with recent adverse credit
Typically needs 20–25% deposit.
Scenario 4: Buy-to-let investor
Usually requires 25% deposit due to rental income stress tests.
Scenario 5: Buying from a family member at a discount
May qualify for 0% deposit through a concessionary purchase.
Summary
Understanding how much deposit you need to get a mortgage depends on your credit history, income, lender criteria and the type of mortgage you want. Options range from 0% to 25%, with the most common deposit levels being:
- 5% for clean credit
- 10–15% for mild to moderate credit issues
- 20–25% for recent adverse credit or buy-to-let
With careful planning, clear financial conduct and realistic expectations, many buyers secure mortgage approval at a deposit level that suits their circumstances.
This article provides general information only. For personalised guidance, regulated mortgage advice is required.
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Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.