Buying guide
How Much Deposit Do You Need to Buy a House?
Your house deposit is the part of the purchase price you pay from your own funds rather than borrowing from the mortgage lender. On a £300,000 home, a 5% deposit is £15,000, a 10% deposit is £30,000 and a 20% deposit is £60,000. Loan-to-value (LTV) is the mortgage divided by the property value. You also need separate money for applicable property tax, legal fees, surveys, moving and emergency reserves.
Applies to: General UK deposit guidance; product eligibility and concessions depend on lender and circumstances.
Deposit versus property price
The deposit is the portion of the agreed property price you fund with your own money rather than the mortgage. Loan-to-value (LTV) compares the loan amount with the property value. For example, £30,000 on a £300,000 purchase represents a 10% deposit and, excluding fees added to borrowing, a 90% LTV mortgage.
A deposit calculation is straightforward; obtaining that mortgage is not. Lenders look at affordability, credit history, property type and their own underwriting. The same LTV may carry very different pricing or eligibility across providers.
Practical checklist
- Compare 5%, 10%, 15% and 20% deposit scenarios.
- Keep affordability separate from simple LTV.
- Avoid relying on assumed mortgage product eligibility.
Cash needed beyond your deposit
Budget for property taxes where applicable, legal work and searches, surveys, lender fees, insurance, removals, immediate repairs and any other funds required before completion. A household spending nearly all available savings on its deposit may be vulnerable to an unexpected bill or higher monthly repayment.
If you are selling another property, expected equity is not cash available immediately. Check the actual redemption figures and completion timeline with your conveyancer and lender.
Practical checklist
- Calculate deposit plus all buying costs.
- Allow cash for initial repairs and bills.
- Consider moving and storage costs.
Higher deposit or stronger cash reserve?
Increasing a deposit may reduce borrowing and possibly change the available mortgage products, but retaining accessible savings can be important when moving into an unfamiliar property. Compare multiple scenarios instead of presuming that putting every spare pound into the deposit is always best.
Use MMG's deposit planner to test the effect of different saving amounts and home prices. Results are illustrations and cannot predict future house prices, income changes or savings rates.
Practical checklist
- Test monthly repayments at different interest rates.
- Compare total cash needed for several property prices.
- Keep an emergency reserve.
When to get professional advice
If the purchase includes shared ownership, gifted deposits, unusual property construction or a complicated income position, the relevant lender and qualified adviser may require additional documents and conditions. In property chains, verify when sale proceeds will actually be available.
Before transferring large sums, independently confirm your conveyancer's payment details to reduce property transaction fraud risk.
Practical checklist
- Confirm proof-of-funds requirements.
- Verify any gift evidence.
- Check bank transfer details independently.
What to read next
Continue with the most relevant next step, or explore the buying journey.
References and further reading
These are the original legal, regulatory and professional sources used to inform this article. MMG explains the key steps above so you do not have to follow external links to find the answer. Circumstances and UK jurisdiction can affect the rules, especially for legal or financial decisions.
My Move Guide publishes general information, not personalised legal, tax, mortgage or financial advice. Estimates and requirements differ by location and circumstances.