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Buying a home in the UK is a significant milestone, but the deposit often feels like the biggest obstacle.

The good news is that with today’s mortgage options and government support, it is more achievable than many people realise.

At THOUSIF Inc. – UK, we regularly help buyers understand the real numbers behind getting on the property ladder.

This guide breaks everything down in straightforward terms, using the latest 2026 figures.

What Is A House Deposit?

A deposit is the amount of cash you put towards the purchase price of a property.

Your mortgage covers the remainder.

It is usually expressed as a percentage of the property value; for example, a 10% deposit means you are borrowing 90% (a 90% loan-to-value, or LTV, mortgage).

A larger deposit generally secures better interest rates and lower monthly repayments.

However, you do not necessarily need 20% or more – options starting at 5% are widely available.

The average UK house price in early 2026 stands at around £290,000.

A 10% deposit on that amount would be £29,000, while 5% would be £14,500.

Minimum Deposit Requirements

The lowest widely available deposit is 5%, meaning a 95% LTV mortgage.

This has been supported by the government’s permanent Mortgage Guarantee Scheme, which encourages lenders to offer these products.

Some specialist mortgages go even lower in specific circumstances (such as with family guarantees), but 5% remains the standard minimum for most buyers.

Here is an overview:

Percentage	LTV	Considerations
5%	95%	Lowest entry; rates may be slightly higher
10%	90%	Wider choice of lenders and competitive rates
15%	85%	Better rates and fewer additional fees
20%+	80% or less	Best rates; strongest negotiating position

First-time buyers most commonly target 5–10% to gain access to the best deals currently available.

Average Deposits In Practice

While 5% is possible, the typical first-time buyer deposit in 2025–2026 ranges from £50,000 to £70,000 nationally, depending on the source and region.

This often equates to 15–25% of the purchase price.

London buyers face significantly higher amounts; a 10% deposit on a typical first-time buyer property there can exceed £44,000, roughly double the UK average.

Many buyers supplement their savings with gifted deposits from family, which lenders accept, provided the gift is documented correctly.

Government Schemes That Can Help

Several initiatives make buying more accessible:

Mortgage Guarantee Scheme: Now permanent, this supports 95% LTV mortgages, enabling purchases with just a 5% deposit.
Lifetime ISA: For those under 40, save up to £4,000 per year and receive a 25% government bonus (up to £1,000 annually).
Shared Ownership: Buy a share of a property (typically 10–75%) and pay rent on the rest; your deposit is calculated only on the share you purchase.
First Homes Scheme: Eligible buyers can purchase new-build homes at a 30–50% discount, substantially reducing the deposit required.

These schemes do not always provide direct cash but effectively lower the amount you need to save or borrow.

Practical Tips For Building Your Deposit

Saving a deposit takes discipline, but steady steps add up quickly:

Open a dedicated savings account or Lifetime ISA (if eligible).
Automate regular transfers to treat savings as a non-negotiable expense.
Review spending on subscriptions, dining out, and other discretionary costs.
Direct windfalls, bonuses, or side income straight into your deposit fund.
Consider living with family or housemates longer to reduce rent outgoings.

Gifted deposits from family are common and perfectly acceptable, provided the proper paperwork is in place.

Is It Worth Saving More Than The Minimum?

Where possible, yes.

A larger deposit delivers:

Lower monthly repayments
Access to the most competitive interest rates
Greater resilience against future market changes

That said, do not exhaust your emergency savings. Financial experts recommend keeping 3–6 months of living expenses in reserve.

Interesting Fact

First-time buyers in London typically need roughly double the deposit required in the rest of the UK, which explains why many opt for the commuter belts, which offer better affordability while retaining access to the capital.

Final Thoughts

The deposit needed to buy a house in the UK in 2026 varies widely, but options starting at 5% – backed by permanent government support- mean homeownership is within reach for many.

Begin by checking your credit score, obtaining a mortgage agreement in principle, and exploring available schemes.

These steps can make a substantial difference to what you need to save.

If this guide has been helpful, we invite you to read more of our articles at THOUSIF Inc. – UK, covering mortgages, saving strategies, and market insights.

Best wishes on your journey to owning your home!