Definition
A deposit can come from savings, a gift, sale proceeds or another source acceptable to the lender. The applicant must disclose where it came from and provide evidence for anti-money-laundering and underwriting checks. Borrowed deposits and incentives are treated differently between lenders and must not be hidden.
Practical example
A £20,000 cash deposit on a £200,000 purchase would leave a £180,000 mortgage before fees and tax.
Why it matters
The deposit affects the loan-to-value, available products and cash remaining for purchase costs and emergencies.
First-time buyer deposit guideSource and review
Reviewed 16 July 2026. Product criteria and rules can change.
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