Buying your first home can feel like a maze, but the moving parts are more predictable than they look. The minimum deposit and the sensible deposit are not always the same thing, especially in a rate-sensitive market. This guide breaks the topic down into plain English so you can move from browsing to action with more confidence.
Quick deposit examples
On a £250,000 home, a 5% deposit is £12,500, a 10% deposit is £25,000 and a 15% deposit is £37,500. The bigger deposit does not only reduce the loan size – it can also open cheaper pricing and a wider lender choice.
How deposits work in 2026
In most cases, UK buyers can still find mortgages from a 5% deposit, but lower-deposit deals usually come with tighter criteria and pricier rates than 10% or 15% options.
- A 5% deposit can open the door, especially where lenders support low-deposit lending, but a bigger deposit usually improves choice and price.
- The permanent Mortgage Guarantee Scheme is designed to support 95% loan-to-value borrowing for eligible repayment mortgages on a main home.
- Gifted deposits are common, but lenders normally want a signed gift letter, proof of funds and confirmation that the money is not repayable.
- A Lifetime ISA can help first-time buyers boost savings with a government bonus if the purchase meets the scheme rules.
Saving a deposit faster without losing focus
Deposit saving is rarely about one dramatic sacrifice. The buyers who get there quickest usually combine a clear target, automation and a realistic timeline.
- Set the target backwards from the type of property and deposit band you want rather than saving without a number in mind.
- Use separate pots for deposit, fees and emergency cash so you do not accidentally spend the money on moving costs.
- Automate saving on payday, not at the end of the month when spare cash is less predictable.
- If you are eligible, a Lifetime ISA can add a 25% government bonus to first-home savings within the scheme rules.
Budget for the costs people forget
The mortgage payment is only one part of the cost of moving. The hidden extras can be large enough to derail a deal if you have saved only for the deposit.
- Common costs include valuation gaps, surveys, solicitor fees, search fees, broker fees, removal costs and initial repairs.
- Leasehold purchases can also bring service charges, ground rent, deed of covenant fees and notice fees after completion.
- MoneyHelper warns that buyers and movers can spend thousands on fees before counting the deposit and any Stamp Duty or Land Tax.
- Build a contingency fund so a repair issue, urgent boiler replacement or extra legal query does not push you into expensive borrowing.
Bottom line
In 2026, 5% can still get you started, but 10% or more often improves your choices. Decide your target deposit by balancing speed, monthly affordability and total deal cost.
FAQs
Can I buy with a 5% deposit?
Yes, in many cases. The trade-off is that rates and lender choice are often better once you reach 10% or more.
Is a gifted deposit allowed?
Often yes, but your lender and solicitor will want a clear paper trail, ID checks and written confirmation that the gift does not create a hidden loan.
General information only. This article is not personal financial advice.