How Much Deposit Do I Need to Buy a House in 2026?

By Ben Garratt Mortgages & Protection

If you're saving for your first home, one of the biggest questions you'll probably have is:

“How much deposit do I actually need for a mortgage?”

The good news is that you don't necessarily need a huge deposit to get onto the property ladder.

Some mortgage products are available with a deposit of just 5%, although the amount you'll need depends on the property you're buying, your circumstances and the mortgage options available to you.

At Ben Garratt Mortgages & Protection, I help first-time buyers understand how much they may need to save and what mortgage options could be available.

Can I Get a Mortgage with a 5% Deposit?

Potentially, yes.

A 5% deposit means you would need to borrow 95% of the property's value. This is known as a 95% Loan-to-Value (LTV) mortgage.

For example:

Property Price 5% Deposit Mortgage

£150,000 £7,500 £142,500

£200,000 £10,000 £190,000

£250,000 £12,500 £237,500

£300,000 £15,000 £285,000

The exact mortgage available will depend on the lender and your individual circumstances.

Does a Bigger Deposit Mean a Better Mortgage?

Generally, having a larger deposit can give you access to a wider range of mortgage products.

For example:

5% deposit = 95% LTV

10% deposit = 90% LTV

15% deposit = 85% LTV

20% deposit = 80% LTV

As your LTV decreases, you may have access to more competitive mortgage rates.

However, this doesn't mean you should automatically wait several more years to save a larger deposit.

It's important to look at your overall financial position.

Should I Wait Until I Have a 10% Deposit?

Not necessarily.

This is a common question from first-time buyers.

If you have a 5% deposit today, it could be worth exploring your options rather than assuming you need another few years to save.

House prices could change during that time, and mortgage rates may also change.

The right decision depends on your personal circumstances, affordability and plans.

Don't Forget About the Other Costs

One of the biggest mistakes first-time buyers make is assuming their deposit is the only money they need.

You'll also need to consider costs such as:

Solicitor and conveyancing fees

Mortgage fees

Survey costs

Removal costs

Buildings and contents insurance

Furniture and appliances

Potential repairs and maintenance

It's important to leave yourself with enough money after completion rather than putting every penny into your deposit.

Can My Family Help With My Deposit?

Potentially.

Some first-time buyers receive financial help from parents or other family members.

This can take different forms, including gifted deposits.

However, lenders have specific requirements around gifted deposits and will usually need confirmation regarding where the money has come from.

It's important to tell your mortgage adviser about any financial assistance you're receiving early in the process.

What About the Lifetime ISA?

A Lifetime ISA (LISA) can be another way for eligible first-time buyers to save towards a deposit.

You can save up to £4,000 per tax year, and the government can add a 25% bonus, subject to the relevant rules and limits.

For example, saving £4,000 could result in a £1,000 government bonus.

There are rules around who can open a LISA, when you can withdraw the money and the maximum property value that can be purchased using the funds.

If you're considering using a LISA, make sure you understand the current rules before relying on it for your purchase.

What If I Don't Have a Large Deposit?

Don't assume that buying a home is impossible.

There are different mortgage options and schemes designed to help buyers with smaller deposits, depending on eligibility.

Your options could depend on:

Your income

Your credit history

The property you're buying

Your employment status

The size of your deposit

The lender's criteria

This is where speaking to a mortgage adviser can be particularly useful.

How Much Should I Save Before Buying?

Rather than simply setting yourself a target of “10%”, think about your entire financial position.

For example, if you're buying a £250,000 property, you might have:

£12,500 deposit

plus money set aside for:

Legal costs + survey + mortgage costs + moving expenses + emergency savings

Having money left over after completion can give you much more financial breathing room.

Can I Buy a House with a 5% Deposit?

For some buyers, yes.

But a 5% deposit isn't suitable for everyone, and the mortgage rate and affordability need to be considered carefully.

The key is not simply asking:

“What's the smallest deposit I can use?”

Instead, ask:

“What deposit and mortgage combination is right for my circumstances?”

Speak to Ben Garratt Mortgages & Protection

Saving a deposit can take years, so it's understandable that you want to know exactly what you're working towards.

At Ben Garratt Mortgages & Protection, I can help you understand:

How much you may be able to borrow

What deposit you may need

Which mortgage options could be available

What your potential monthly payments could look like

What additional costs you need to budget for

Whether you've saved 5%, 10% or more, getting advice early can help you understand your options before you start seriously viewing properties.

Ready to Start Your Home-Buying Journey?

If you're a first-time buyer and you're wondering whether you have enough saved for a deposit, get in touch with Ben Garratt Mortgages & Protection.

You may be closer to owning your first home than you think.

Let's work out what could be possible for you.

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