How Much Deposit Do You Really Need to Buy a Home?

One of the biggest questions first-time buyers ask is:

"How much deposit do I actually need?"

It's also one of the biggest reasons people delay buying a home, as many people assume they need to save tens of thousands of pounds before speaking to a mortgage advisor. While having a larger deposit can certainly provide more options, the reality is often more encouraging than people expect.

At Love Mortgages, we regularly speak to people who are surprised to learn they may be closer to buying a home than they realised.

In this article, we'll explain how deposits work, what lenders look for, and why the amount you need depends on your own circumstances.

What is a mortgage deposit?

A mortgage deposit is the amount of money you contribute towards buying a property. The mortgage then covers the remaining purchase price.

For example, if you were buying a property worth £250,000 and had a £25,000 deposit, you would need a mortgage for the remaining £225,000.

Your deposit represents your financial contribution to the purchase, while the lender provides the rest.

Is there a minimum deposit?

The minimum deposit required can vary depending on the lender, the mortgage product, and your individual circumstances. Many lenders offer mortgages to buyers with smaller deposits, while others may require a larger contribution.

The size of your deposit is just one part of the overall assessment. Lenders will also consider factors such as:

• Your income
• Existing financial commitments
• Credit history
• Employment status
• The type of property you are buying

Every application is assessed individually, which is why it's always worth understanding your own options rather than relying on general assumptions.

Does a bigger deposit make a difference?

Generally speaking, yes. A larger deposit can often provide access to:

• A wider choice of lenders
• A broader range of mortgage products
• Potentially lower interest rates
• Lower monthly repayments
• Reduced overall borrowing

However, that doesn't automatically mean waiting years to save a larger deposit is always the best approach. For some buyers, purchasing sooner with a smaller deposit may be more appropriate than delaying indefinitely.

The right decision depends on your personal circumstances and long-term plans.

What is Loan to Value (LTV)?

You may hear mortgage advisers talk about Loan to Value, often shortened to LTV.

This simply describes the percentage of the property's value that you are borrowing.

For example:

• Borrowing £180,000 on a £200,000 property would mean an LTV of 90%.
• Borrowing £150,000 on the same property would mean an LTV of 75%.

Generally speaking, the lower the LTV, the more mortgage options may be available. Don't worry if these figures sound unfamiliar; your mortgage adviser will explain how they apply to your own situation.

Can gifted deposits be used?

Many first-time buyers receive help from family members. In some cases, lenders will accept a gifted deposit, provided certain requirements are met. Typically, the person providing the gift will need to confirm that:

• The money is a genuine gift.
• It does not need to be repaid.
• They will have no ownership rights over the property.

Different lenders have different requirements, so it's always worth checking what documentation may be needed.

What other costs should first-time buyers budget for?

The deposit isn't the only expense involved in buying a home. Depending on your circumstances, you may also need to budget for:

• Solicitor or conveyancing fees
• Survey costs
• Mortgage product fees (where applicable)
• Removal costs
• Buildings insurance
• Furniture and moving expenses
• Stamp Duty (Applicable if property is worth more than £300,000 in England. In Wales, for properties over £225,000. Scotland over £175,000)

Planning for these additional costs can help make the buying process feel much less stressful.

Should you wait until you've saved more?

This is one of the most common questions we hear. There isn't a universal answer. Saving a larger deposit may provide access to more mortgage options, but waiting also has potential downsides.

Property prices can change over time, as can mortgage rates and your own personal circumstances. Rather than focusing solely on reaching a particular savings target, it can be helpful to understand what may already be possible.

Many buyers are pleasantly surprised once they've had a conversation about their options.

Don't assume you need more than you do

One of the biggest misconceptions in the property market is that buying a home is out of reach. While everyone's financial circumstances are different, many people rule themselves out before they've even explored what's available.

Speaking to a mortgage adviser early doesn't mean you're committing to anything. It simply allows you to understand:

• What you may be able to borrow
• Whether your current deposit could be sufficient
• What your next steps might look like
• Areas where you could strengthen your position

Sometimes, a short conversation is all it takes to turn uncertainty into a clear plan.

A final word from Love Mortgages

Saving for a deposit is an important milestone, but it's only one part of buying a home.

The amount you'll need depends on a range of factors, including your income, financial commitments, the property you're buying, and the mortgage products available at the time.

Rather than relying on assumptions, it can be helpful to understand your own circumstances and explore the options available to you.

At Love Mortgages, we're here to make the process feel clear, straightforward, and free from jargon.

Whether you're actively saving for your first home or simply wondering how close you might be to buying, we're always happy to have a conversation and help you understand your next steps.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Approved by In Partnership FRN 190859 August 2026.