# How much deposit do you need for your first home?

> Most lenders want a deposit of at least 5% of the price, so £12,500 on a £250,000 home. A bigger deposit usually gets you a lower rate, and you'll need money for fees on top.

Saving · Published 2026-10-04 · Updated 2026-10-04 · https://firstkey.uk/articles/how-much-deposit-do-i-need

## The smallest deposit most lenders accept

Lenders call the deposit and the loan your loan to value, or LTV. A 5% deposit means a 95% LTV mortgage. Plenty of lenders offer these to first-time buyers, but the rates are higher than with a bigger deposit, and there are fewer deals to choose from.

## Why 10% can be worth waiting for

Rates usually step down at 90%, 85%, 75% and 60% LTV. On a £250,000 home at the same 4.5% rate over 30 years, a 5% deposit means about £1,203 a month and a 10% deposit about £1,140. In real life the 10% deal would often have a lower rate too, so the gap is usually bigger.

**A bigger deposit isn't always better.** Don't empty every account to make the deposit bigger. Keep enough for the fees below, for moving, and a cushion for the first few months.

## The cash you need on top

- Legal fees: about £1,730 for a freehold home at this price, more for leasehold.
- Searches: about £350.
- A survey: from about £730.
- Moving: about £600 for a small move.
- Stamp duty: nothing in England for a first-time buyer at this price, but it's different in [Scotland and Wales](https://firstkey.uk/guide/stamp-duty).

[Work out your day one cash](https://firstkey.uk/costs): The costs calculator adds up the deposit, tax and fees for any price.

## Ways to build it faster

- A [Lifetime ISA](https://firstkey.uk/guide/lifetime-isa) adds 25% on top of what you save, up to £1,000 a year, for a first home up to £450,000.
- Help from family, given as a gift. See [how gifted deposits work](https://firstkey.uk/articles/gifted-deposit).
- [Shared ownership](https://firstkey.uk/shared-ownership-calculator), where the deposit is 5% to 10% of your share, not of the whole home.

## Questions people ask

### Can I buy a house with no deposit?

A few lenders offer 100% mortgages, usually with strict rules and higher rates. Most first-time buyers put down at least 5%.

### Does a bigger deposit lower my rate?

Usually, yes. Rates tend to drop as your deposit crosses 10%, 15%, 25% and 40% of the price.

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