What’s the Average House Deposit in the UK?
, by Matt Stevens
Getting onto the property ladder generally begins with one question: how much will you need to save for a mortgage deposit? Whether you’re buying your first home or moving to a new one, it’s only natural to want a clear idea of what people actually put down.
In this article, we’ll look at the latest averages and what they mean for you so that you can work out a realistic savings target. We will go over:
How much deposit do I need for a house?
A deposit of 5% to 10% of the property price is the minimum required for a standard repayment mortgage in the UK. So, for a home valued at £200,000, you’d need to save between £10,000 and £20,000.
Saving more than the minimum, however, makes a noticeable difference by how a larger deposit reduces the amount you need to borrow, which in turn lowers your monthly repayments. It also improves your loan-to-value (LTV) ratio, i.e., the proportion of the property’s price covered by the mortgage rather than your own funds.
A lower LTV places you in a stronger financial position in that it protects you from the risk of negative equity (owing more than your property is worth). Lenders also offer a wider range of products and more competitive interest rates to borrowers with a lower LTV, which thereby reduces the overall cost of your mortgage.
What is the average first-time buyer deposit in the UK?
Figures from Better, as of March 2025, indicate that first-time buyers are putting down a median deposit of £48,350 against a median property price of £370,500. With most borrowers going for a 30-year mortgage term, this works out at roughly a 14.65% deposit, or an 86% LTV.
UK Finance data from the same period paints a slightly different picture for England specifically, showing an average first-time buyer deposit of £68,154. Based on an average property price of £296,322, this equates to an LTV of around 23%.
All this being said, it’s important to remember that these figures vary considerably across regions. For instance, in Northern Ireland, the typical first-time buyer deposit is around £39,034, while buyers in Wales and Scotland are averaging £34,475 and £30,786 respectively.
What is the average home mover deposit in the UK?
Data from the same Better report shows that those getting a moving home mortgage put down a median deposit of £75,000. With the median property price sitting at £370,500 and an average mortgage term of 26 years, this leaves us at a deposit of just over 20%, or an 80% LTV.
Unlike first-time buyers, home movers benefit from the equity they’ve already built in their current property. Even so, the figures reveal a relatively steady pattern, which is that many people tend to move home once they’ve accumulated around 20% equity, suggesting a natural threshold at which trading up becomes viable.
What are the benefits of a bigger deposit?
Saving up for a sizable deposit represents several meaningful benefits when you come to apply for a mortgage:
As mentioned, the more you contribute upfront, the less the lender is required to finance, and so the lower the risk from their perspective. Interest rates therefore improve as your LTV ratio falls. For example, a 5% deposit (95% LTV) leads to the highest rates, while a 25% deposit (75% LTV) or a 40% deposit (60% LTV) results in the best deals.
A larger deposit reduces the amount you need to borrow, which consequently brings down your monthly repayments. Combined with a better rate, this entitles you to significant savings over the life of the mortgage.
Lenders carry out affordability assessments to make sure the mortgage is within your means. And, a bigger deposit will increase your chances of passing these checks, especially if you’ve got bad credit.
If you do have a poor credit score, then you should use our free credit check tool (£14.99 per month after the free 7-day trial). It will help you spot mistakes and identify fraudulent activity so that you can quickly deal with any such problems. The trial and subscription can be cancelled at any time.
How can I increase my deposit size?
Saving up for a deposit is a real uphill struggle, particularly if you’re juggling rent and other living costs as well. Despite this, there are a couple of ways to get ahead, like making use of a Lifetime ISA (LISA). A LISA lets you save up to £4,000 each year, and the government will top this up with a 25% bonus, providing you with an extra £1,000 annually.
Alternatively, if your parents or close family members are in a position to help, a gifted deposit will substantially boost what you’re able to put down. Parents who already own property could even think about remortgaging to release equity in order to free up funds for this reason, although they should seek advice before doing so.
Should I keep saving or buy now?
Deciding whether to carry on saving or to buy now isn’t straightforward. Though the average deposit figures are intimidating, they only give a rough idea of what others are paying. After all, every buyer’s situation is different, depending on the location, their finances, and the kind of mortgage they choose.
It’s also worth remembering that the cost of a home is unlikely to remain the same over a decade. You will face other expenses too, such as legal fees and charges alongside stamp duty. If you’re eager to become a homeowner sooner and don’t mind paying more overall, there are options.
One such route is the government’s Mortgage Guarantee Scheme, which allows you to buy with a 5% deposit. For new-build properties, there’s the Deposit Unlock scheme offered by certain builders, also permitting the same 5% deposit amount. The last alternative is shared ownership, where you purchase a portion of a property and pay rent on the remaining share to a housing association.
Ultimately, whether you should wait and save more or take the plunge now depends on your personal tolerance for risk, how long you’re willing to save, and how comfortable you are with the financial commitments involved.
Whatever your circumstances, our team of expert mortgage brokers at The Mortgage Genie will talk you through the full range of choices available and guide you to a lender that fits your goals. If you’re interested, then be sure to give us a call at 01915809890. And why not see how much you could borrow up to today by using our mortgage calculator?
The above blog has information contained within which was correct at the time of publication but is subject to change.
FAQs
What is the average deposit for a buy-to-let mortgage?
For buy-to-let mortgages, lenders expect a deposit of around 25% of the property’s value. This is the minimum requirement, meaning higher deposits could be necessary for riskier properties.
What is the average deposit for a second home?
When buying a second home, the deposit usually falls between 15% and 25% of the property’s value, yet the exact figure will vary depending on the lender and the type of property.
Can I get a 100% mortgage?
Yes, 100% mortgages are available via the Skipton Building Society ‘Track Record’ mortgage, which is aimed at those who can demonstrate a consistent history of paying rent, allowing them to buy a property without a deposit.
