Deposit

A deposit is an amount of money provided by the buyer to obtain a mortgage after contracts are exchanged on the property in question. The most common amount to provide as a deposit is between 5% and 10% of the price paid to buy the property.

As a rule of thumb, the more money you can put down as a deposit, the better your options are for seeking a competitive mortgage. Typically, 5% is the smallest deposit you can provide. That said, many lenders insist on a 10% deposit as a minimum percentage. If you can save more, you’ll find banks and building societies can provide you with better deals. The larger the deposit, the lower the interest rates are on the available mortgage deals on the market.

Many sources state that 20% is the ideal sum to save as a deposit on a property in the UK for this very reason. If you can offer even more, the deals get better still. This is typically only possible for those who are moving from one property to another. They can use the proceeds from the property they are selling to provide a bigger deposit on their next property.

However, if all you can manage is a small deposit such as 5%, there are still some competitive deals on the market. Shopping around is always important, as it gives you a better idea of who is offering which deals.

You may sometimes hear about 0% deposit mortgages too. While these were popular in recent years, this cannot be said of the current mortgage market. Many saw them as risky deals that could lead to problems in paying back an expensive mortgage deal. It is always advisable to save whatever you can to create the biggest deposit you can when looking to buy your own property.

The most competitive mortgage deals can be had with a 40% deposit and this is the same for residential and buy to let mortgages.

About the author:

The Mortgage Broker

The Mortgage Broker is an award-winning UK mortgage and protection specialist with decades of experience helping thousands of customers secure suitable and affordable mortgage solutions. Regulated by the Financial Conduct Authority, all advisers are minimum CeMAP-qualified and known for delivering clear, transparent, and expert guidance whether helping first-time buyers, home movers, remortgage clients or those with complex or adverse-credit needs. Recognised as a finalist at the Mortgage Strategy Awards 2025, The Mortgage Broker combines digital speed with human trust, offering access to over 130 lenders and more than 25,000 products. The company’s app, secure client portal and easy-to-use tools make it simple for customers to compare rates, track progress, and stay informed from start to finish. With more than 2,500 verified five-star Trustpilot reviews, clients consistently praise the firm’s professionalism, value for money, and personal service. Reviews highlight the team’s ability to explain complex mortgage and protection topics in plain English, providing support throughout the entire journey. The company’s reputation for knowledge, empathy, and reliability has made it one of the UK’s most trusted brokers, delivering advice that is honest, transparent, and tailored to each individual’s financial goals. Every part of The Mortgage Broker’s service reflects Google’s E-E-A-T principles: Experience, Expertise, Authoritativeness, and Trustworthiness. Its team has decades of hands-on industry knowledge, proven technical expertise, and national recognition supported by awards, media features, and verified customer feedback. As an FCA-regulated firm with a 5-star reputation, The Mortgage Broker stands for no-nonsense advice, common-sense lending, and exceptional customer outcomes — setting the standard for trusted mortgage advice across the UK.