UK Mortgage Calculator · Practical guide
How Much Deposit Do I Need for a Mortgage in the UK?
From 5% to 20% and beyond — see what each deposit level means for your loan and monthly payment.
At a glance
The Short Answer
Most UK lenders require a minimum deposit of 5% of the property price, so £12,500 on a £250,000 home. In practice, saving 10% to 20% unlocks meaningfully lower interest rates and smaller monthly payments.
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UK Mortgage Calculator
Enter your own values, then compare the result with the examples below.
Results
Deposit Levels on a £250,000 Property
| Deposit % | Deposit Amount | Loan Amount |
|---|---|---|
| 5% | £12,500 | £237,500 |
| 10% | £25,000 | £225,000 |
| 15% | £37,500 | £212,500 |
| 20% | £50,000 | £200,000 |
What a Bigger Deposit Saves You Monthly
At 5% over 25 years on a repayment basis, the £237,500 loan from a 5% deposit costs about £1,388 per month. The £200,000 loan from a 20% deposit costs about £1,169 per month — a saving of roughly £219 every month, before counting the better rates that lower loan-to-value deals usually offer.
Why Deposit Size Affects Your Rate
Lenders price mortgages by loan-to-value (LTV) bands. Moving from 95% LTV to 90% or 80% typically cuts the interest rate on offer, because the lender takes less risk. Each band boundary you cross can shave a noticeable amount off the monthly payment — run the exact loan amount, rate, and term in the calculator above.
Do Not Forget the Other Costs
Your deposit is not the only cash you need upfront. Budget separately for stamp duty (where applicable), solicitor fees, surveys, and moving costs, which commonly add several thousand pounds to the purchase.
Frequently Asked Questions
Can I get a UK mortgage with no deposit at all?
100% mortgages are rare and usually require a guarantor or family member to provide security, such as savings held with the lender. The standard minimum deposit is 5%.
Does a gifted deposit count?
Yes, most lenders accept deposits gifted by close family, but they will require a signed letter confirming the money is a gift and not a loan that must be repaid.
Is a bigger deposit always better?
Usually, because it lowers both your loan amount and your interest rate band. But keep an emergency fund back rather than putting every penny into the deposit.
How does Help to Buy or shared ownership affect the deposit?
Schemes like shared ownership let you buy a portion of a property, so the deposit is calculated on your share rather than the full price. This can cut the upfront deposit dramatically.