How Much Deposit Do You Really Need to Buy a House in 2026?

How Much Deposit Do You Really Need to Buy a House in 2026?

One of the biggest misconceptions when it comes to buying a home is how much deposit you actually need. We regularly speak to clients who believe they need a 10% or even 20% deposit before they can consider buying. In reality, this isn’t always the case. While a larger deposit can open up more options, many buyers are surprised to learn that it may be possible to purchase with far less.

What Is a Mortgage Deposit?

A deposit is the amount of money you contribute towards the purchase of a property, with the remaining amount covered by your mortgage.

For example:

Property price: £250,000

Deposit: £25,000 (10%)

Mortgage: £225,000

The size of your deposit will affect both the mortgage products available to you and the interest rates offered.

What Is the Minimum Deposit Required?

In many cases, buyers can purchase a property with as little as 5% deposit.

This means:

£200,000 property → £10,000 deposit

£300,000 property → £15,000 deposit

There are also some situations where lenders may accept lower deposit levels in real terms, depending on the structure of the product and overall affordability. However, eligibility will depend on factors such as income, credit history, and the type of property being purchased.

Does a Bigger Deposit Make a Difference?

Yes, a larger deposit can improve your mortgage options.

Generally speaking:

5% deposit → Higher rates, fewer lenders

10% deposit → More choice, improved rates

15%+ deposit → Access to the most competitive deals

A larger deposit reduces the lender’s risk, which is why better rates are typically available.

Can Your Deposit Be Gifted?

Yes, many lenders accept gifted deposits, usually from close family members.

This is very common for first-time buyers and can be a useful way to get onto the property ladder sooner.

Lenders will normally require:

A signed declaration confirming the gift

Proof of the donor’s funds

Confirmation that the money is not a loan

What About Using Savings vs Other Sources?

Deposits can come from a variety of sources, including:

Personal savings

Gifts from family

Inheritance

Sale of another property

What lenders want to see is that the deposit is from a legitimate and traceable source.

Using loans, credit cards, or other borrowed funds for a deposit is generally not acceptable.

Why Many Buyers Delay Unnecessarily

A common theme we see is buyers delaying their plans because they believe they need a much larger deposit than is actually required. In reality, lending criteria changes regularly and new products are introduced that may allow buyers to purchase sooner than expected.

The key is understanding what is possible based on your own circumstances, rather than relying on general assumptions.

The Importance of Getting Advice Early

Before continuing to save for several more years, it can be worth reviewing your options.

Speaking to a mortgage adviser can help you understand:

How much deposit you may actually need

What you could potentially borrow

Which lenders may be suitable

Whether you are closer to buying than you think

For many buyers, that conversation is the point where purchasing a home starts to feel achievable.

Your home may be repossessed if you do not keep up repayments on your mortgage. The information contained within was correct at time of publication but is subject to change (published 30 March 2026).