How Much Deposit Do First Time Buyers Need In 2026?

For many people looking to buy their first home, one of the biggest questions is how much deposit is needed for a mortgage. The good news is that you don’t always need a huge deposit to get on the property ladder.

In this guide, we explain how much deposit first time buyers need in the UK, how lenders assess your application, and what options may be available if you have a smaller deposit.

If you’re a first time buyer in Poulton-le-Fylde, the Fylde Coast or anywhere in the UK, understanding the deposit requirements can help you plan your home purchase with confidence.

What Is the Minimum Deposit for a First Time Buyer?

In the UK, the minimum deposit for a mortgage is usually 5% of the property value.

For example:

Property Price	5% Deposit	10% Deposit
£200,000	£10,000	£20,000
£250,000	£12,500	£25,000
£300,000	£15,000	£30,000

Many lenders offer 95% mortgages, meaning you only need a 5% deposit to buy your first home.

However, while this is the minimum requirement, having a larger deposit can unlock better mortgage deals and lower interest rates.

A mortgage broker can help compare lenders to find the best option for your situation.

Can You Buy a House With a 5% Deposit?

Yes — many first time buyers successfully purchase property with a 5% deposit.

These mortgages are commonly referred to as 95% loan-to-value (LTV) mortgages.

With this type of mortgage:

• You provide a 5% deposit

• The lender provides 95% of the property value

These products are designed specifically to help first time buyers get onto the property ladder sooner.

However, lenders will still consider several factors before approving your mortgage, including:

• Your income and affordability

• Credit history

• Employment status

• Existing financial commitments

Speaking to a mortgage broker early in the process can help you understand how much you may be able to borrow.

What Deposit Gets the Best Mortgage Rates?

While a 5% deposit mortgage is possible, the best mortgage rates are usually available with larger deposits.

Typical mortgage tiers include:

5% deposit (95% LTV)Great for first time buyers with limited savings but usually slightly higher interest rates.

10% deposit (90% LTV)More lenders available and typically better rates.

15%–20% depositLower monthly payments and more competitive deals.

25%+ depositOften the most competitive mortgage rates.

A mortgage adviser can help you compare different options and understand how increasing your deposit could affect your monthly payments.

Speak to a Mortgage Broker Today

If you're unsure how much deposit you need to buy a house, getting professional advice early can make the process much smoother.

At Burrows Financial Services, we help first time buyers, home movers and remortgage clients find the right mortgage solutions.

Book a free mortgage consultation today and take the first step toward owning your first home.

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