Can I buy a house with just a 5% deposit?

Yes, you can buy a house with a 5% deposit. Many lenders offer 95% LTV mortgages for first-time buyers. However, you'll pay higher interest rates and have fewer lender options compared to 10% or 15% deposits.

What is a Lifetime ISA and how does it help with deposits?

A Lifetime ISA lets you save up to £4,000 per year towards your first home. The government adds a 25% bonus (up to £1,000 yearly). You must be 18-39 to open one and use it for a property under £450,000.

Can my parents give me money for a house deposit?

Yes, gifted deposits from parents are widely accepted by lenders. Your parents must sign a gift letter confirming it's a gift with no repayment expected. They'll also need to provide proof of where the money came from.

How much deposit do I need for a £250,000 house?

For a £250,000 house, a 5% deposit is £12,500, 10% is £25,000, and 15% is £37,500. A 10% deposit significantly improves your interest rate options compared to 5%.

Quick Answer

How Much Deposit Do I Need as a First-Time Buyer?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

First-time buyers typically need a minimum 5% deposit, though 10-15% unlocks better mortgage rates.

The minimum deposit for most lenders is 5% of the property value. However, with a 5% deposit you'll have limited lender choice and higher interest rates. A 10% deposit significantly improves your options and rates. If you can save 15% or more, you'll access the most competitive rates available. Government schemes like Lifetime ISAs can help boost your deposit.

Your home may be repossessed if you do not keep up repayments on your mortgage. Your Home Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA 989177).

Key Points

15% deposit is the absolute minimum for most lenders
210% deposit unlocks significantly better rates
315%+ deposit provides access to best rates
4Average UK first-time buyer deposit is around £53,000
5Lifetime ISA adds 25% government bonus (up to £1,000/year)
6Gifted deposits from family are acceptable to most lenders

Eligibility Criteria

Minimum 5% deposit from acceptable source
Deposit can be savings, gift, or inheritance
Gifted deposits require donor declaration letter
No borrowed deposits (credit cards, loans)
3 months of bank statements showing deposit
Proof of source for large deposits (anti-money laundering)

Typical Timeframe

Saving for a deposit typically takes 3-5 years for first-time buyers. Using a Lifetime ISA from age 18 maximises your savings with the 25% government bonus. The average first-time buyer saves for around 4 years before purchasing.

Next Steps

1Open a Lifetime ISA if under 40 (max £4,000/year, 25% bonus)
2Set up a dedicated savings account for your deposit
3Calculate how much you can realistically save monthly
4Explore whether family can provide a gift towards deposit
5Speak to a mortgage adviser about deposit requirements in your area

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How Much Deposit Do I Need as a First-Time Buyer?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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