Can I get a UK mortgage with no deposit at all?

Yes, in narrow circumstances. Skipton's Track Record mortgage and a small number of similar products allow first-time buyers with a strong rental track record (typically 12 months on time, no missed bills) to buy with 0% deposit. The loan is capped at what a renter can demonstrably afford, and the property must be valued accordingly. These are specialist products and almost always require a broker.

What's the minimum deposit for a standard UK mortgage?

5% of the property purchase price under standard 95% LTV products supported by the Mortgage Guarantee Scheme. From 18 May 2026, Lloyds Banking Group also offers a 98% LTV product with a flat £5,000 deposit (up to a property cap), so the absolute minimum cash deposit can be lower than 5% on that product.

Do I get a better rate with a bigger deposit?

Yes, materially. UK lenders price mortgages in LTV bands. Each 5% step from 95% down to 75% LTV typically unlocks a noticeably better rate. The biggest single drop is usually between 90% and 85% LTV. Below 75% LTV the rate improvements get smaller. For most first-time buyers, getting to 10% deposit is the highest-leverage savings goal.

Can I borrow my deposit?

No, not for a residential mortgage. Lenders need the deposit to be genuine equity — your savings, a gift from family (with a signed gifted deposit letter), or proceeds from a sale. Borrowed deposits (personal loans, credit cards, second-charge loans) will be detected on bank statements and your application will be declined.

What proof of deposit do I need to show?

Lenders typically want 3 months of bank statements showing the deposit accumulating or being held. Large recent deposits trigger source-of-funds questions under anti-money-laundering rules. Save into a clearly named account, avoid round-number transfers that look unusual, and keep a paper trail for every meaningful payment in.

How long does it take to save a UK first-time buyer deposit?

On average, around 8 to 10 years saving 10% of post-tax income at a £53,000 target deposit. A Lifetime ISA accelerates this — £4,000/year of LISA contributions earns a £1,000 government bonus, so 4 years of maxing the LISA delivers £20,000 saved + £5,000 bonus. Combined with a partner's LISA, you can hit a 10% deposit on a £250,000 property in roughly 5 years.

First-Time Buyer Deposit UK: How Much in 2026?

This guide is for information only. It is not regulated mortgage advice. For a recommendation tailored to your circumstances, speak to an FCA-authorised mortgage broker — we can match you with one for free. Your home may be repossessed if you do not keep up repayments on your mortgage.

The headline numbers in 2026

UK first-time buyers are saving longer than ever. The average first-time buyer deposit in England is around £53,000 — roughly 22% of an average first-time buyer property price of £238,000. Outside London the percentages are similar but the cash sums are lower; inside the M25 the cash sums are much higher, often £80,000+ for a typical FTB flat.

But "average" hides what's possible. The minimum deposits available right now are:

0% — Skipton Track Record and similar specialist 100% LTV products (rental-history-based, narrow eligibility).
£5,000 flat — Lloyds Banking Group's 98% LTV first-time buyer product, launched 18 May 2026. Property cap applies.
5% of price — standard 95% LTV under the Mortgage Guarantee Scheme (made permanent July 2025), available from most major UK lenders.

Whether one of these "minimum" options is right for you depends on the rate you'll actually pay — which is where deposit size makes the biggest financial difference.

How LTV affects your rate (and how much that's worth)

Loan-to-Value (LTV) is the size of the loan as a percentage of the property price. UK lenders price mortgages in LTV bands, and the rate gap between bands is real money over a 25-year term.

Indicative 5-year fixed rates as of May 2026 (these change daily):

LTV	Deposit on £250,000 home	Typical 5-year fix	Monthly on £237,500 loan (95% LTV) vs £200,000 (80% LTV)
98%	£5,000	~5.4%	£1,498/mo @ 25y
95%	£12,500	~4.9%	£1,372/mo @ 25y
90%	£25,000	~4.6%	£1,265/mo @ 25y
85%	£37,500	~4.4%	£1,170/mo @ 25y
80%	£50,000	~4.3%	£1,090/mo @ 25y
75%	£62,500	~4.2%	£1,012/mo @ 25y

The biggest single step is usually the move from 90% to 85% LTV. Below 75% the gains shrink. For most first-time buyers, getting from 5% to 10% deposit is the highest-leverage savings target — it's the difference between a "standard" 5-year fix and a noticeably cheaper one.

Run your own numbers with the mortgage repayment calculator and the LTV calculator.

The Mortgage Guarantee Scheme (MGS): 95% LTV explained

The MGS was introduced as a temporary support after the pandemic and was made permanent in July 2025. It works by the UK government guaranteeing a slice of the lender's risk on 95% LTV mortgages, encouraging high-street banks to lend at 95% LTV without pricing the risk prohibitively.

For first-time buyers it means:

5% deposit is widely available from most major banks (Halifax, NatWest, Barclays, HSBC, Santander, Nationwide, and others).
You apply directly to a participating lender — no separate scheme paperwork.
You still pass the lender's normal affordability and stress test. The MGS doesn't make a mortgage you can't afford suddenly affordable.
The mortgage runs like any other 95% LTV mortgage from your perspective; the guarantee is invisible to you.

See our full guide to the Mortgage Guarantee Scheme and 95% mortgages for the participating-lender list and current rates.

The Lloyds 98% LTV £5,000-deposit product (May 2026)

From 18 May 2026, Lloyds Banking Group accepts a flat £5,000 deposit on a 98% LTV first-time buyer mortgage, regardless of property price up to a £500,000 cap. This is the most aggressive low-deposit product launched by a major UK lender in over a decade.

The key terms:

£5,000 cash deposit, irrespective of price (within cap).
Property price cap (Lloyds publishes the exact figure on launch — confirm directly).
Strict affordability assessment at 98% LTV.
Fixed-rate periods of 2, 3, or 5 years available.
Conventional underwriting otherwise.

Trade-off: the rate at 98% LTV is higher than at 95% LTV. On a £200,000 loan over 25 years, the rate difference vs a 95% product is typically £80-£120 per month. Worth it if you can't get to 5% deposit but can afford the slightly higher monthly cost.

100% LTV mortgages (Skipton Track Record etc.)

Skipton's Track Record mortgage allows first-time buyers with at least 12 months of on-time rental payments to borrow at 100% LTV. The maximum loan is capped by your demonstrated rental capacity (the lender takes your historic rent as proof of what you can pay monthly). Other building societies have launched comparable products from time to time.

These work for some buyers but they have downsides: rates are higher than at 95% LTV, and any drop in property value puts you immediately into negative equity. Take broker advice — these are specialist products.

Where the deposit comes from matters

UK lenders accept deposits from these sources:

Your own savings — held in your name, ideally for 6+ months. Recent large deposits will be questioned.
Gifted deposits from immediate family, with a signed gift letter (full guide).
Inheritance — paper trail required (probate documents).
Sale of an asset — proof of sale (e.g. car sale, share sale).
Lifetime ISA withdrawals at point of purchase — automatic via your solicitor (LISA guide).
Bank of England-equivalent overseas savings — accepted but with extra AML scrutiny.

Sources lenders won't accept:

Personal loans, credit-card balance transfers, or any borrowed money for the deposit itself.
Gambling winnings without a clear paper trail.
Cash savings that suddenly appear without a credible source.
Crypto disposals without documented sale (some lenders accept; many don't).

Other money you need beyond the deposit

Stamp Duty — first-time buyers in England/NI pay 0% to £300k, 5% on £300k-£500k. Use the SDLT calculator. Detailed guide: Stamp Duty for first-time buyers.
Conveyancing / legal fees — £1,200-£2,500.
Survey — £300 (basic) to £1,000+ (Level 3 Building Survey on an older property).
Mortgage product fee — £0 to £1,995, sometimes addable to the loan.
Removals — £400-£1,500 depending on distance and contents.
Buildings insurance — required from exchange of contracts, ~£200-£500/year.
Initial furniture/appliances — easy to underestimate.

Realistically, plan to have an additional 3-5% of the property price available on top of your deposit to cover these costs. On a £250,000 property that's £7,500-£12,500 beyond your deposit.

How to size your deposit decision

The decision tree most first-time buyers should run:

If you can save 10% deposit within 6-12 months — save the extra. The rate band drop is usually worth the wait.
If you can save 5% but not 10%, and rates are stable or falling — apply now at 95% LTV. The MGS makes this widely available.
If you can save £5,000 only, and you're paying more than your future mortgage in rent — the Lloyds 98% LTV product may make sense. Run the numbers carefully.
If you've been renting reliably for 12+ months and have no deposit — explore Skipton Track Record. Talk to a broker first.
If a family member can gift you £10,000-£20,000 — that single move drops your LTV band significantly. Worth the awkward conversation.

What to do next

Use the affordability calculator to see what borrowing your income supports. Then use the LTV calculator and repayment calculator together to model what each deposit level costs you in monthly payments.

When you're ready to get matched with a broker who specialises in first-time buyers, tell us a bit about your situation. Free, no obligation. We are not a broker — we are an introducer service, and your broker will be FCA-authorised.

How Much Deposit Do You Really Need as a UK First-Time Buyer in 2026?