Written by Mark Langshaw Reviewed by Lee Trett
26 January 2026
Hub page introduction, criteria and FAQs added
12 December 2024
First Published
A quick overview of mortgage deposits
Deposits are required for the vast majority of mortgages. They cover a percentage of the purchase price of the property and act as your initial equity you’ve invested. In most cases, you are unlikely to be approved without one, although there are a few specific exceptions where you can get home finance without one.
You can find out more about how deposits work and how they affect your application in our guide to mortgage deposits.
How much deposit do I need?
The amount you put down as a deposit has a direct impact on the mortgage deals you are offered. This is because it determines your loan-to-value (LTV) ratio, which lenders use to assess the riskiness of loaning you money.
While most lenders have set rates attached to certain LTV thresholds, others can be more flexible and offer rates bespoke to your broader circumstances. However, on average, deposit requirements tend to be
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5% minimum requirements for a residential mortgage
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15% is the typical minimum requirement for a new build house, although in some cases they may be as low as 5%
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15-25% is the typical minimum requirement for a buy-to-let mortgage
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40% is the deposit level where the absolute best market leading rates become available
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Source of Deposit |
Evidence Needed |
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Personal Savings |
Bank statements showing the gradual accumulation of funds over time |
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Gifted Deposits |
A signed letter from the donor confirming it is a gift, not a loan, along with their ID and proof of funds |
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Sale of Assets |
A memorandum of sale and bank statements showing the funds entering your account |
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Inheritance |
Legal documentation from the executor of the estate confirming the amount and the payout |
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Equity Release |
A mortgage statement or conveyancer’s letter if the funds are coming from the sale of a previous property |
Accepted deposit sources
Not all lenders accept all of the following deposit sources, however, all lenders need to know where your funds originated to comply with anti-money laundering regulations. This table shows common sources used to pay mortgage deposits and the evidence required.
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For most residential properties, the minimum deposit is 5%, although this can be more depending on your credit history or the property type. Keep in mind that the more you put down, the lower your monthly interest rates are likely to be, however.
No deposit mortgages are rare but do exist. Alternatively, you might use a guarantor mortgage, where a family member puts up their own property or savings as security instead of you providing a cash deposit.
Yes. A larger deposit reduces the Loan-to-Value (LTV) ratio. Lenders view lower LTV applications as less risky, which can lead to a smoother approval process and access to a wider range of mortgage products.
Find a better mortgage deal with Money Helpdesk today
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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