--- title: "First Time Buyer Deposit UK 2026 — How Much Do You Really Need? | First Rung Now" description: "First time buyer deposit UK: 5%, 10%, 15% or 25%? LTV bands, gifted deposits, LISA, family help and the exact numbers for every deposit size in 2026." lang: en-GB json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com", "logo": { "@type": "ImageObject", "url": "https://firstrungnow.com/logo-512.png", "width": 512, "height": 512 }, "description": "Independent UK mortgage education and broker matching service.", "address": { "@type": "PostalAddress", "addressCountry": "GB" } }, { "@context": "https://schema.org", "@type": "WebSite", "name": "First Rung Now", "url": "https://firstrungnow.com" }, { "@context": "https://schema.org", "@type": "Article", "headline": "First-Time Buyer Deposit", "description": "First time buyer deposit UK: 5%, 10%, 15% or 25%? LTV bands, gifted deposits, LISA, family help and the exact numbers for every deposit size in 2026.", "author": { "@type": "Organization", "name": "First Rung Now" }, "publisher": { "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com" }, "mainEntityOfPage": "https://firstrungnow.com/first-time-buyer-deposit", "datePublished": "2026-06-15", "dateModified": "2026-06-15", "inLanguage": "en-GB" }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://firstrungnow.com/" }, { "@type": "ListItem", "position": 2, "name": "Mortgage Guides", "item": "https://firstrungnow.com/mortgage-guides" }, { "@type": "ListItem", "position": 3, "name": "First-Time Buyer Deposit", "item": "https://firstrungnow.com/first-time-buyer-deposit" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What is the minimum deposit for a first-time buyer in the UK in 2026?", "acceptedAnswer": { "@type": "Answer", "text": "The minimum realistic deposit on the open market is 5% of the purchase price. A tiny handful of 100% LTV products exist — Skipton Track Record for proven renters and family-supported products like Barclays Family Springboard — but for the vast majority of first-time buyers, 5% is the floor." } }, { "@type": "Question", "name": "Is a 10% deposit better than a 5% deposit?", "acceptedAnswer": { "@type": "Answer", "text": "Almost always, yes. Moving from 95% LTV to 90% LTV in 2026 typically shaves 0.45%–0.65% off the interest rate. On a £200,000 mortgage over 30 years, that saves roughly £70/month or £25,200 over the term — a return of £2.50 saved per £1 of extra deposit put in." } }, { "@type": "Question", "name": "Do lenders accept a gifted deposit from parents?", "acceptedAnswer": { "@type": "Answer", "text": "Yes — essentially every UK lender accepts gifted deposits from immediate family. The giver signs a gifted deposit declaration confirming the money is a gift, not a loan, that they have no interest in the property, and that they'll subordinate any future claim. Some lenders (Nationwide, Barclays) also accept gifts from step-parents, siblings and grandparents; others limit it to parents." } }, { "@type": "Question", "name": "Can I use a Lifetime ISA for my deposit?", "acceptedAnswer": { "@type": "Answer", "text": "Yes — this is one of the LISA's primary purposes. You can withdraw the balance including the 25% government bonus penalty-free for a first home costing up to £450,000 anywhere in the UK. Funds must have been in the LISA for at least 12 months before withdrawal." } }, { "@type": "Question", "name": "How much deposit do I need for a £250,000 first home?", "acceptedAnswer": { "@type": "Answer", "text": "5% = £12,500 (95% LTV, rates ~5.35% in 2026). 10% = £25,000 (90% LTV, ~4.85%). 15% = £37,500 (85% LTV, ~4.65%). Add stamp duty (£0 as FTB below £300k in England/NI), legal fees £1,200–£1,500, survey £450–£900, and typical mortgage fees £0–£1,200 (often added to loan)." } }, { "@type": "Question", "name": "Can I borrow money to use as a deposit?", "acceptedAnswer": { "@type": "Answer", "text": "No — all mainstream UK lenders reject borrowed deposits. That includes personal loans, credit cards, and undisclosed loans from family. Lenders check bank statements and question any large recent credits. Concealing a loaned deposit is mortgage fraud and voids the mortgage." } } ] } ] --- [Skip to content](#main) [London 020 8088 2997 ](tel:02080882997)[National 0333 567 1185 ](tel:03335671185) [![First Rung Now](/assets/logo-mark-CNo3p3DP.png) First Rung Now UK Mortgage Guides ](/) - Mortgages - Remortgages - Buy To Let - Bad Credit - Calculators - Guides - [Find a Broker](/find-a-mortgage-broker) - [About](/about) [London 020 8088 2997 ](tel:02080882997)[National 0333 567 1185 ](tel:03335671185) [Speak to a Vetted Broker](/find-a-mortgage-broker) 1. [Home](/) 2. [Mortgage Guides](/mortgage-guides) 3. First-Time Buyer Deposit UK Mortgage Guide # How Much Deposit Do First-Time Buyers Need in the UK? 2026 Guide The deposit is the single biggest hurdle between renters and homeowners in the UK. But the number itself — 5%, 10%, 15%, 20% — is only half the story. The right deposit for you depends on how much cheaper the mortgage becomes at each Loan-to-Value band, how long it would take you to save the next band, and what your rent is costing you in the meantime. This guide gives you the exact 2026 numbers so you can decide whether to buy now with 5% or wait six months for 10%. First Rung Now Editorial Updated 15 June 2026 7 min read On this page 1. [Key takeaways](#key-takeaways) 2. [The LTV bands that dictate your rate](#the-ltv-bands-that-dictate-your-rate) 3. [Should you buy at 5% or wait for 10%?](#should-you-buy-at-5-or-wait-for-10) 4. [Speak with a vetted mortgage broker about deposit strategy and 95% LTV first-time buyer mortgages](#speak-with-a-vetted-mortgage-broker-about-deposit-strategy-and-95-ltv-first-time-buyer-mortgages) 5. [Where the deposit can come from](#where-the-deposit-can-come-from) 6. [Personal savings](#personal-savings) 7. [Gifted deposits](#gifted-deposits) 8. [Lifetime ISA](#lifetime-isa) 9. [Help to Save](#help-to-save) 10. [Inheritance](#inheritance) 11. [Sale of assets](#sale-of-assets) 12. [Where the deposit cannot come from](#where-the-deposit-cannot-come-from) 13. [How to save a deposit faster](#how-to-save-a-deposit-faster) 14. [The invisible extras beyond the deposit](#the-invisible-extras-beyond-the-deposit) 15. [What about zero deposit?](#what-about-zero-deposit) 16. [The bottom line](#the-bottom-line) 17. [Frequently asked questions](#frequently-asked-questions) 18. [What is the minimum deposit for a first-time buyer in the UK in 2026?](#what-is-the-minimum-deposit-for-a-first-time-buyer-in-the-uk-in-2026) 19. [Is a 10% deposit better than a 5% deposit?](#is-a-10-deposit-better-than-a-5-deposit) 20. [Do lenders accept a gifted deposit from parents?](#do-lenders-accept-a-gifted-deposit-from-parents) 21. [Can I use a Lifetime ISA for my deposit?](#can-i-use-a-lifetime-isa-for-my-deposit) 22. [How much deposit do I need for a £250,000 first home?](#how-much-deposit-do-i-need-for-a-250000-first-home) 23. [Can I borrow money to use as a deposit?](#can-i-borrow-money-to-use-as-a-deposit) 24. [Related guides](#related-guides) 25. [First-Time Buyer Guide UK](#first-time-buyer-guide-uk) 26. [Lifetime ISA for First-Time Buyers](#lifetime-isa-for-first-time-buyers) 27. [No Deposit Mortgages for FTBs](#no-deposit-mortgages-for-ftbs) 28. [How Much Can I Borrow?](#how-much-can-i-borrow) 29. [First-Time Buyer Costs](#first-time-buyer-costs) 30. [First-Time Buyer Schemes](#first-time-buyer-schemes) ### First-time buyers — related reads MIPs, deposits, schemes and the UK buying process. - [Does an MIP include your deposit? Why your MIP is the loan only, and how to work out your real purchase budget. ](/mortgage-in-principle-deposit) - [House buying timeline What actually happens — and how long it takes — between offer accepted and keys. ](/house-buying-timeline) - [£300k home loan Salary, deposit, monthly cost and stamp duty for a £300,000 mortgage. ](/300k-home-loan) - [Help to Buy calculator Equity loan repayment maths and the schemes that replaced Help to Buy in England. ](/help-to-buy-calculator-mortgage) - [No deposit mortgage Every active UK 100% LTV product and the trade-offs that decide fit. ](/no-deposit-mortgage) Explore the hubs [Mortgages explained](/mortgages)[Remortgages](/remortgages)[Buy-to-let mortgages](/buy-to-let)[Bad credit mortgages](/bad-credit-mortgages)[Mortgage calculators](/mortgage-calculators)[All mortgage guides](/mortgage-guides)[Find a mortgage broker](/find-a-mortgage-broker) ## Key takeaways - 5% is the practical minimum FTB deposit — 100% LTV products exist but are narrow. - The 5% → 10% LTV jump typically saves 0.5% on rate — worth ~£25,000 over 30 years on a £200k loan. - Diminishing returns kick in below 75% LTV — extra deposit beyond that saves less than you'd earn in savings. - Gifted deposits from family are universally accepted; loans as deposits are universally rejected. - LISA bonus adds £1,000/year of free money — the highest-return deposit boost available. ## The LTV bands that dictate your rate Want a vetted broker to help with The LTV bands that dictate your rate? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) UK mortgage pricing steps up in bands. Every 5% you move down in LTV — from 95% to 90% to 85% and so on — typically unlocks a materially cheaper rate. The exact steps in 2026: Deposit LTV Typical 5-year fix Monthly on £200k 5% 95% 5.10%–5.65% £1,090–£1,158 10% 90% 4.65%–5.15% £1,035–£1,094 15% 85% 4.45%–4.85% £1,010–£1,058 20% 80% 4.30%–4.65% £992–£1,034 25% 75% 4.15%–4.55% £974–£1,022 40%+ 60% 4.05%–4.40% £962–£1,003 The steepest saving comes from crossing 90% LTV — from that point on the pricing curve flattens. If you're at 6% deposit, pushing to 10% is worth every extra month of saving. If you're at 25%, pushing to 30% saves you very little. ## Should you buy at 5% or wait for 10%? Related · keep reading - [Bad credit mortgage checker Place your situation on the lender severity scale and see what a specialist will accept. ](/bad-credit-mortgage-checker) - [Bad credit second mortgage Secured second charges as an alternative to remortgaging when credit has slipped. ](/bad-credit-second-mortgage) Browse the full hub: [All mortgage guides](/mortgage-guides) Want a vetted broker to help with Should you buy at 5% or wait for 10%?? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Take a couple targeting a £220,000 home, currently at 5% deposit (£11,000) and paying £1,050 rent. They can save £600/month. - **Buy now (5% deposit, 5.45% rate):** Mortgage payment £1,180/month, break-even after ~10 years vs renting given rent growth. - **Wait 18 months (build to 10% deposit £22,000, assume 4.95% rate):** Mortgage payment £1,077/month. But you pay 18 × £1,050 = £18,900 in rent while waiting, and the same home is likely to have risen ~4%. The maths usually favours buying at 5% if the target property is likely to rise faster than 3% a year, or if rent is above 90% of what the mortgage payment would be. In flat or falling markets, waiting for 10% pays off. Vetted UK Broker Match ### Speak with a vetted mortgage broker about deposit strategy and 95% LTV first-time buyer mortgages Free, no-obligation introduction to an FCA-regulated adviser with experience in your specific scenario. We've done the due diligence so you don't have to. - FCA-regulated only - Typical reply in 1 working day - No upfront fees [Match me with a broker](/find-a-mortgage-broker) ## Where the deposit can come from Want a vetted broker to help with Where the deposit can come from? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) ### Personal savings Money in your name, seasoned in an account for 3+ months. Show statements. Lenders occasionally ask for the source of large lump-sum credits (£3,000+) — a bonus payslip, sale of a car (V5 transfer), or ISA transfer statement satisfies this. ### Gifted deposits Every UK high-street lender accepts gifted deposits from immediate family. The gift-giver signs a declaration confirming: (1) it's a gift, not a loan; (2) they have no interest in the property; (3) they'll take no legal charge; (4) they can afford it. The gift usually needs to be in your account 2–4 weeks before completion. See [mortgage with parental help](/mortgage-with-parents). ### Lifetime ISA Under-40s can open a LISA, save up to £4,000/year, and receive a 25% government bonus (£1,000/year free). Withdraw penalty-free for first home up to £450,000. See our [LISA guide](/lifetime-isa-first-time-buyer). ### Help to Save For universal credit / working tax credit claimants. Save up to £50/month for 4 years; the government pays a 50% bonus. Maximum £1,200 bonus. ### Inheritance Accepted universally. You'll usually be asked for probate documentation or the executor's payment statement to evidence the source. ### Sale of assets Car sale, cryptocurrency (some lenders won't touch it — Halifax fine, Nationwide picky), share sale — all acceptable with evidence. ## Where the deposit cannot come from Related · keep reading - [Bad credit with a large deposit How a 25%+ deposit unlocks rates adverse-credit borrowers thought were closed. ](/mortgage-with-bad-credit-but-large-deposit) - [Contractor mortgages with bad credit Day-rate and limited-company contractors: which specialist lenders will look at you. ](/mortgages-for-contractors-with-bad-credit) Browse the full hub: [All mortgage guides](/mortgage-guides) Want a vetted broker to help with Where the deposit cannot come from? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) - Personal loans, credit cards, overdrafts — outright rejected. - Cash gifts without a paper trail — you must be able to show the source. - Undisclosed private loans from friends or family — mortgage fraud. - Employer loans repayable over time — some private-bank exceptions but not high-street. - Bridging loans as deposit for a residential purchase — very rare, and only via specialist lenders. ## How to save a deposit faster Want a vetted broker to help with How to save a deposit faster? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) 1. **Max out both partners' LISAs:** A couple can save £8,000/year and receive £2,000 in bonuses. Two years = £20,000 including bonuses. 2. **Cut the biggest three costs, not fifty small ones:** Rent, car, food delivery. £150/month saved on each = £5,400/year. 3. **Move in with parents for 6–12 months:** The single most effective deposit accelerator, saving £8,000–£15,000. 4. **Ask for family help early:** A £10,000 gift can move you from 5% to 10% LTV, saving far more than it costs in mortgage interest. 5. **Bank pay rises and bonuses directly:** Set up an auto-transfer from payroll before the money hits the current account. 6. **Sell things you don't use:** Second car, unused parking space, unwanted gifts. Vinted, eBay, Facebook Marketplace. ## The invisible extras beyond the deposit Related · keep reading - [Poor credit mortgage lenders The specialist UK lenders most willing to price recent adverse credit. ](/poor-credit-mortgage-lenders) - [MIP with bad credit Getting a credible MIP when your file shows defaults, CCJs or missed payments. ](/mortgage-in-principle-bad-credit) Browse the full hub: [All mortgage guides](/mortgage-guides) Want a vetted broker to help with The invisible extras beyond the deposit? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) The deposit isn't the only cash you need on completion day. Budget for these on top: - Legal fees: £900–£1,600 (freehold), add £250–£500 for leasehold. - Stamp duty: £0 as FTB under £300,000 in England/NI. Different in Scotland (LBTT) and Wales (LTT). - Survey: £450–£1,500 depending on level. - Mortgage product fee: £0–£1,499 (often added to loan). - Broker fee: £0–£500. - Removals: £300–£1,200. - Buildings insurance: £180–£400/year, first payment usually monthly. - Life/critical illness cover: £15–£60/month (not compulsory but heavily recommended). See our full [first-time buyer costs breakdown](/first-time-buyer-costs) for real numbers on £180k, £250k and £350k purchases. ## What about zero deposit? Want a vetted broker to help with What about zero deposit?? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Genuine 100% LTV mortgages exist but they're narrow. Skipton's Track Record targets renters with 12 months' proven rental payments at or above the proposed mortgage payment. Barclays Family Springboard and Family Building Society use parental savings as security instead of a deposit. See our [no deposit FTB guide](/no-deposit-mortgage-for-first-time-buyers). ## The bottom line Related · keep reading - [First-time buyer with adverse credit How first-time buyers with credit issues get onto the ladder in 2026. ](/first-time-buyer-adverse-credit-mortgages) - [Bad credit bridging loan Short-term asset-backed lending when adverse credit closes high-street doors. ](/bad-credit-bridging-loan) Browse the full hub: [All mortgage guides](/mortgage-guides) Want a vetted broker to help with The bottom line? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) If you can hit 10%, do. If you can hit 15%, even better — but not if it means renting for another two years. Beyond 25%, extra deposit produces diminishing returns and you're often better keeping the cash as an emergency fund or overpaying the mortgage in year one. ## Frequently asked questions ### What is the minimum deposit for a first-time buyer in the UK in 2026? ### Is a 10% deposit better than a 5% deposit? ### Do lenders accept a gifted deposit from parents? ### Can I use a Lifetime ISA for my deposit? ### How much deposit do I need for a £250,000 first home? ### Can I borrow money to use as a deposit? ## Related guides [ ### First-Time Buyer Guide UK The complete step-by-step FTB journey. Read guide ](/first-time-buyer-guide-uk)[ ### Lifetime ISA for First-Time Buyers Free 25% government bonus explained. Read guide ](/lifetime-isa-first-time-buyer)[ ### No Deposit Mortgages for FTBs 100% LTV routes when you have nothing saved. Read guide ](/no-deposit-mortgage-for-first-time-buyers)[ ### How Much Can I Borrow? Income multiples and affordability for FTBs. Read guide ](/how-much-can-i-borrow-first-time-buyer)[ ### First-Time Buyer Costs Every fee, tax and one-off cost. Read guide ](/first-time-buyer-costs)[ ### First-Time Buyer Schemes First Homes, Shared Ownership, MGS and more. Read guide ](/first-time-buyer-schemes-uk) First-Time Buyer Match ### Get matched with a first-time buyer mortgage specialist Free, no-obligation introduction to an FCA-regulated broker who works with first-time buyers every day — whatever your stage, deposit or credit profile. - FCA-regulated brokers only - Typical reply in 1 working day - No upfront fees — your data goes to one broker only Full name Email Phone Postcode Where are you in your journey? Select your stage… Just researching Saving my deposit Ready to get a mortgage in principle Have an MIP, viewing properties Had an offer accepted Anything else? (optional) Match me with a broker By submitting you agree to be contacted by First Rung Now and one matched FCA-regulated broker. Your home may be repossessed if you do not keep up repayments on your mortgage. First Rung Now Independent UK mortgage education and broker matching. We don't sell mortgages — we help you understand them, then connect you with vetted advisers. Brokers are FCA-regulated [hello@firstrungnow.com](mailto:hello@firstrungnow.com) ### Hubs - [Mortgages](/mortgages) - [Remortgages](/remortgages) - [Buy To Let](/buy-to-let) - [Bad Credit Mortgages](/bad-credit-mortgages) - [All Calculators](/calculators) - [All Guides](/mortgage-guides) - [Find a Broker](/find-a-mortgage-broker) ### Calculators - [Affordability Calculator](/calculators/affordability) - [Repayment Calculator](/calculators/repayments) - [Loan-to-Value (LTV) Calculator](/calculators/borrowing) - [Remortgage Savings Calculator](/calculators/remortgage) - [First-Time Buyer Calculator](/calculators/first-time-buyer) - [Buy-to-Let Calculator](/calculators/buy-to-let) - [Home Equity Calculator](/calculators/equity) - [Stamp Duty Calculator](/calculators/costs) - [Overpayment Calculator](/calculators/overpayments) - [Rent vs Buy Calculator](/calculators/comparison) - [Self-Employed Calculator](/calculators/specialist) - [Fixed-Rate Expiry Calculator](/calculators/refinance) - [Salary to Mortgage Calculator](/calculators/income) - [Rental Yield & ROI Calculator](/calculators/investment) ### Bad credit & specialist - [Bad Credit Mortgage Checker](/bad-credit-mortgage-checker) - [Poor Credit Mortgage Lenders](/poor-credit-mortgage-lenders) - [Remortgage with Bad Credit](/remortgage-with-bad-credit) - [Bad Credit + Large Deposit](/mortgage-with-bad-credit-but-large-deposit) - [Contractor Bad-Credit Mortgages](/mortgages-for-contractors-with-bad-credit) - [First-Time Buyer Adverse Credit](/first-time-buyer-adverse-credit-mortgages) - [MIP with Bad Credit](/mortgage-in-principle-bad-credit) ### Buy-to-let & bridging - [Best HMO Mortgage Lenders](/best-hmo-mortgage-lenders) - [Holiday Let Mortgages](/holiday-let-mortgages-best-rates) - [Limited Company BTL](/landlord-misconceptions-limited-company-btl) - [BTL Houses Sheffield](/buy-to-let-houses-sheffield-mortgage) - [BTL Interest-Only Calculator](/buy-to-let-interest-only-calculator) - [Bad Credit Bridging Loan](/bad-credit-bridging-loan) - [Bridging Loans for Bad Credit](/bridging-loans-for-bad-credit) ### Rates, rules & circumstances - [Fixed vs Tracker](/fixed-vs-tracker-mortgage) - [Tracker vs Fixed (Rates)](/tracker-vs-fixed-mortgage) - [Does MIP Include Deposit?](/mortgage-in-principle-deposit) - [House Buying Timeline](/house-buying-timeline) - [Two Residential Mortgages](/two-residential-mortgages) - [Parent–Child Joint Mortgage](/parent-child-joint-mortgage) - [Spouse Visa Mortgages](/mortgage-lenders-for-spouse-visa-uk) - [RIO Mortgage Calculator](/retirement-interest-only-mortgage-calculator) - [Overpay Mortgage or Pension](/overpay-mortgage-or-pension) © 2026 First Rung Now. Educational content — not financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage. [About](/about)· [Privacy](/privacy-policy)· [Terms](/terms)· First Rung Now is not a broker. We connect users with FCA-regulated mortgage advisers. [Match me](/find-a-mortgage-broker)[Call Us](tel:03335671185)