How Much Deposit Do First-Time Buyers Typically Need?
Buying your first home is exciting — but let’s be honest, the deposit is often the part that feels most out of reach. You might be wondering, how much do first-time buyers typically need for a mortgage?
The short answer is: most first-time buyers need between 5% and 15% of the property’s value as a deposit. But the exact amount depends on your circumstances, your credit history, and the type of mortgage you choose.
At Mortgage Bridge, we help first-time buyers every day — from those just starting to save to those ready to make an offer. In this guide, we’ll walk you through exactly how deposits work, how much you’ll likely need, and what you can do to make your dream of owning a home happen sooner.
What’s the Minimum Deposit for First-Time Buyers?
The minimum deposit for first-time buyers is 5% of the property price.
That means if you’re buying a £250,000 home, you’ll need at least £12,500 as a deposit.
Here’s a quick guide to what that looks like at different price points:
| Property Price | 5% Deposit | 10% Deposit | 15% Deposit |
|---|---|---|---|
| £200,000 | £10,000 | £20,000 | £30,000 |
| £250,000 | £12,500 | £25,000 | £37,500 |
| £300,000 | £15,000 | £30,000 | £45,000 |
Most first-time buyers aim for around 10%, as it tends to unlock more competitive interest rates and a wider choice of lenders. But the good news is — if your credit and affordability are strong, 5% deposit mortgages are still widely available.
Why Do Lenders Require a Deposit?
Your deposit is your way of showing a financial stake in the property. It reduces the lender’s risk because they’re lending you less than the full value of the home.
The smaller your deposit, the higher the loan-to-value (LTV) ratio — and generally, the higher the interest rate.
For example:
- 95% LTV (5% deposit) = higher risk to lender, slightly higher rates.
- 90% LTV (10% deposit) = moderate risk, better rates.
- 85% LTV or lower = lower risk, access to the best rates.
So while you can buy with 5%, saving more where possible can make your mortgage cheaper over time.
How Much Deposit Do First-Time Buyers Typically Save?
According to recent data, the average first-time buyer deposit is around 15–20% of the property price — but that’s just an average.
Many buyers purchase successfully with 5–10%, especially with schemes like family springboard mortgages, shared ownership, and guaranteed 95% mortgages.
Your situation — income, credit score, and property value — will ultimately determine what’s realistic.
At Mortgage Bridge, we’ll help you identify what you actually need for your specific goal, not just what the national averages say.
What Affects How Much Deposit You Need?
The size of your deposit depends on several factors. Let’s break them down:
1. Your Credit History
If your credit score is strong, lenders are happy with smaller deposits.
If you’ve had missed payments, defaults, or other credit issues, they may ask for more (typically 10–15%) to reduce risk.
We work with specialist lenders who accept first-time buyers with less-than-perfect credit — but having a bigger deposit always helps your chances.
2. Your Income and Affordability
Lenders assess how much you can borrow based on your income, outgoings, and debts.
If you’re stretching your affordability, they might require a slightly larger deposit to balance things out.
3. Property Type
Some property types (like flats above shops or new builds) come with stricter deposit requirements — sometimes 10–15%.
This is due to resale and value fluctuation risks.
4. Mortgage Product Type
Some specialist products, like shared ownership or help-to-buy-style schemes, allow smaller deposits (sometimes as little as 2.5%).
Others, like buy-to-let, need at least 25%.
We’ll make sure you’re matched to the right lender and product for your situation, so you don’t end up saving more than you actually need.
What Are the Benefits of a Larger Deposit?
While saving a bigger deposit takes longer, it can save you thousands in the long run. Here’s why:
✅ Lower Interest Rates: Lenders offer better deals at lower LTVs.
✅ Higher Approval Chances: You’ll be seen as a lower-risk borrower.
✅ Lower Monthly Payments: Borrowing less means smaller repayments.
✅ Protection Against Market Fluctuations: You’ll have more equity in your home from day one.
Even an extra 5% deposit can make a surprising difference — for example, moving from 95% to 90% LTV could reduce your interest rate by 0.5% or more.
Can You Buy a House With No Deposit as a First-Time Buyer?
It’s rare — but not impossible.
No-deposit mortgages, also known as 100% mortgages, are limited and come with strict criteria. Some “family springboard” or “guarantor mortgages” allow buyers to put down no deposit if a family member provides savings or property equity as security.
For example, Barclays’ Family Springboard Mortgage lets a parent place 10% of the property’s value into a linked savings account for five years, acting as security instead of a deposit.
These options can work well if your affordability is strong but saving has been tough — we’ll guide you through what’s available and what’s safest for your situation.
What Schemes Can Help First-Time Buyers with Their Deposit?
If saving for a deposit feels daunting, there are plenty of government and lender-backed schemes to make it easier.
1. Deposit Unlock
A new initiative available through certain developers and lenders, allowing buyers to purchase new-build homes with just a 5% deposit.
2. Shared Ownership
Buy a share of a property (usually 25–75%) and pay rent on the rest. Your deposit is based on the share you’re buying — so it could be far smaller than you think.
3. First Homes Scheme
Offers eligible buyers (mainly key workers and local residents) a discount of 30–50% on new homes, lowering both the deposit and mortgage required.
4. Lifetime ISA (LISA)
Save up to £4,000 a year towards your deposit, and the government adds a 25% bonus (up to £1,000 per year).
5. Family Springboard Mortgages
Let family members temporarily provide a deposit via savings rather than gifting cash — a great way to buy sooner without depleting family funds.
We’ll check which schemes you qualify for and show you how to combine them with your deposit savings for maximum impact.
How to Save for a First-Time Buyer Deposit Faster
Saving for a deposit can feel like a marathon, but a few smart steps can speed things up:
- Set a clear target. Know your goal (e.g. £20,000 for a £400,000 property).
- Open a dedicated savings account or Lifetime ISA. Keep it separate from day-to-day spending.
- Automate your savings. Transfer a fixed amount right after payday.
- Cut non-essentials. Even small changes — like fewer subscriptions — add up.
- Boost your credit score. A better credit profile could mean qualifying for a smaller deposit or cheaper deal.
- Track your progress. Seeing your balance grow is motivating and helps you stay on course.
We’ve helped countless buyers find ways to save smarter — and in many cases, buy sooner than they thought possible.
Can Parents Help with a First-Time Buyer Deposit?
Yes — and this is increasingly common.
Parents can help in several ways:
- Gifted deposit: A straightforward gift that boosts your deposit size.
- Family springboard mortgage: Parents place money in a savings account as security.
- Joint borrower, sole proprietor (JBSP): Parents help with affordability but don’t co-own the property.
Each option has different pros and tax implications, so it’s worth getting tailored advice before deciding.
We’ll help you and your family choose the structure that works best for everyone.
How Much Deposit Do You Need if You Have Adverse Credit?
If you’ve had credit issues in the past, lenders may ask for a larger deposit — often 10–20%.
That’s because they see it as extra security if your credit file shows missed payments or defaults.
The good news? There are specialist lenders who consider applicants with:
- CCJs or defaults
- Past arrears
- Debt Management Plans (DMPs)
- IVAs or even bankruptcy (if discharged)
We specialise in these types of cases — so even if your credit isn’t perfect, we can often find a solution that helps you buy your first home.
Should You Wait to Save a Bigger Deposit or Buy Sooner?
It depends on your personal situation and the housing market.
Buying sooner with a smaller deposit might make sense if:
- You can afford repayments comfortably.
- House prices are rising faster than you can save.
- You qualify for a first-time buyer scheme.
Waiting to save a bigger deposit might make sense if:
- You’re just shy of a major LTV threshold (e.g. from 95% down to 90%).
- Your credit score is improving.
- You want to reduce your long-term borrowing costs.
We’ll help you model both options — showing how waiting or buying now could impact your repayments, rate, and long-term costs.
How Mortgage Bridge Can Help First-Time Buyers
Getting a mortgage for the first time can feel complicated — but with the right advice, it doesn’t have to be.
At Mortgage Bridge, we:
✅ Calculate how much deposit you’ll realistically need for your target property.
✅ Compare 5%, 10%, and 15% deposit mortgages across dozens of lenders.
✅ Explore family, government, or shared ownership schemes to make your deposit go further.
✅ Handle your full application and guide you through every step, from Agreement in Principle to completion.
We’ve helped hundreds of first-time buyers get on the ladder with deposits big and small — and we’d love to help you too.
Final Thoughts: The First Step to Your First Home
Saving a deposit might feel like the hardest part of buying a home, but it’s also the most empowering. Every pound brings you closer to owning your own space and building equity instead of paying rent.
Most first-time buyers get started with a 5–10% deposit — and with today’s lender flexibility, you might need less than you think.
At Mortgage Bridge, we’ll help you figure out what’s achievable right now, explore every scheme and lender available, and make your first home purchase as smooth and stress-free as possible.
If you’re ready to find out how much deposit you’ll really need — and what your next step should be — let’s talk. We’re here to help you make it happen.