How Big a Deposit Do I Need to Buy a House?
The right deposit size depends on your budget, the property price you’re targeting and how lenders price risk. Use these guidelines and the HouseBudget Calculator to model different deposits and see how they change your monthly payments.
What influences the deposit you need
- LTV bands: Rates usually improve as you move from 95% to 90%, 85% and 75% loan-to-value brackets.
- Credit profile: Strong credit and clean conduct may unlock higher LTV deals; weaker credit can require a larger deposit.
- Property type: New builds and flats sometimes need a higher deposit from certain lenders.
Common deposit targets
- 5%: minimum for many first-time buyer products but often higher rates.
- 10%: a popular balance between access to deals and manageable savings goal.
- 15–20%: can secure better rates and lower payments, useful if income is tighter.
Test deposits in the calculator
- Enter your income, debts, rate and term in the calculator.
- Adjust the deposit amount and property price to see how the mortgage size and monthly payment respond.
- Check the stress-rate payment to ensure you could afford the loan if rates rise after a fix.
Ways to build or stretch your deposit
- Set up an automatic monthly transfer into a dedicated savings or LISA account.
- Reduce high-interest debt first to free up cash for saving and to improve affordability checks.
- Consider a slightly lower property price to hit a better LTV band sooner.
A clear deposit target plus realistic monthly payment gives you confidence when viewing homes. Keep testing scenarios in the HouseBudget Calculator as your savings grow and rates change.