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How big a deposit do you actually need?

The honest answer is 5% will do and 10% is much better. What matters after that is whether you are close to the next band, and what waiting actually costs.

The short answer

5% is the usual minimum deposit and 10% opens up noticeably better pricing. Lenders price in bands at 95%, 90%, 85%, 80% and 75% loan to value, so crossing a band is worth more than saving an arbitrary extra amount. The cheapest rates are typically available with a 40% deposit (60% loan to value).

5%Usual minimum
10%Where choice and pricing improve
25%Rates keep improving at larger deposits
£450,000Lifetime ISA property price cap

The bands, and what crossing one is worth

Lenders price by loan to value band. The bands are usually 95%, 90%, 85%, 80%, 75% and 60%. Crossing one is where the saving happens.

You have saved On a £220,000 home Loan to value
£11,000 5% 95%
£22,000 10% 90%
£33,000 15% 85%
£55,000 25% 75%

Illustration only. The relationship between deposit and pricing is consistent even as rates move.

Working out whether to wait

Two numbers decide it. What the rate improvement saves you over the fixed period, and what waiting costs in rent and rising prices.

Saving another £11,000 to reach 15% instead of 10% might cut the rate by around 0.3%. On a £187,000 loan that is roughly £30 a month, or £1,800 over five years. If it takes eleven months of renting at £900 to save it, waiting costs more than it saves.

Run that comparison with your own numbers. The answer flips depending on how close you already are to the next band.

Things that are not worth waiting for

  • Going from 25% to 30%, which may change the rate by less than a band does
  • Waiting for prices to fall, which nobody can time
  • Saving an extra thousand that leaves you mid-band
  • Emptying an emergency fund to reach a band

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Getting there faster without risk

Lifetime ISAA 25% bonus on up to £4,000 a year for a first home within the price cap. Check the cap covers your area.
A documented family giftCommon and accepted. It needs a signed letter confirming it is a gift, not a loan.
Clearing a commitment insteadSometimes £300 a month of car finance blocks more borrowing than the same money adds as deposit.
Keeping it in cashA deposit needed within two years does not belong in anything that can fall.

Where you stand

Buy now if
  • You are already at a band such as 10% or 15%
  • Rent is high and saving faster is not realistic
  • Your credit file is clean and your income is steady
  • You have costs and a small buffer on top of the deposit
Wait a few months if
  • You are within a couple of thousand pounds of the next band
  • The deposit would leave you with nothing behind it
  • A credit commitment ends soon and would free up borrowing
  • A missed payment will drop off your file shortly

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

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Questions people actually ask

How big a deposit do I need?
5% is the usual minimum. 10% is where choice and pricing improve noticeably. Larger deposits keep improving the rate, with the cheapest rates typically at a 40% deposit (60% loan to value).
Is a 5% deposit enough?
Yes for many lenders, though the rate is higher and criteria are tighter. New build flats and unusual property types can be harder at 95%.
Should I wait to save more?
Only if you are close to the next band. Compare the interest saved over the fixed period against the rent and price movement while you wait.
Does a deposit have to be my own money?
No. A documented family gift is normal. Lenders need a letter confirming it is a gift with no claim on the property.
Where should I keep my deposit?
In cash you can reach on the day. Money needed within two years should not sit in anything that can fall in value.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Where to go next

Where these figures come from

Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.

Close to a band and not sure whether to wait?

Send us a message and we can introduce you to a separately authorised firm that can work through it with you.

Start a conversation

Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

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