How much deposit for a mortgage as a  first-time buyer?

What is the minimum deposit for a mortgage as a first-time buyer?

As we speak today in December 2025, you could potentially get a mortgage with no deposit with one lender. I’m also aware of another lender that will consider a mortgage based on a £5,000 deposit – but these types of products do have stricter criteria you need to hit.

How can I save for a mortgage deposit?

This is a question brokers are asked a lot, and we know it’s difficult right now. House prices are continuing to climb, and so are everyday costs such as rent, shopping, going out and gym membership.

However, there is an ISA available where, once opened for one year, the government starts paying you a 25% bonus. This is the Lifetime ISA and you can pay in up to £4,000 per annum currently. Another option is to use gifts from parents.

What are my options if I’m struggling to save for a deposit?

If you’re struggling to save for a deposit, you could explore the Lifetime ISA. You could also look for family assistance or buy with a partner or even a friend.

Other options include reducing your rent or other spending. For example, if you buy a nice coffee on the way to work every morning, that’s £25 a week. Instead, make one at home and put that £25 away.

Life choices like this could make a difference in whether you can afford to buy your first home.

Can I get a deposit from my family as a first-time buyer?

Yes. Gifted deposits are becoming more and more common for first-time buyers and are a great way to help you onto the market. The deposit doesn’t even have to come from your family. Some lenders even accept gifted deposits from your landlord or your employer.

Can I use a credit card to fund my house deposit?

No, using a credit card to fund a house deposit is not possible. Lenders just wouldn’t feel comfortable with this scenario.

What is the average deposit for a first-time buyer?

I would typically say between 5% and 15%, based on the clients I deal with. I would say that around 25% now have some sort of gifted deposit from family members.

Can I get a 0% deposit mortgage as a first-time buyer?

Yes – as things stand in December 2025, this is possible. However, there will be certain criteria you would need to hit. For example, you would need to have rented your accommodation for 12 out of the last 18 months.

Should I save for a bigger deposit?

Ultimately, it’s your decision as a borrower. Saving for a bigger deposit can have its advantages, which I’ll come on to in a minute. But you also need to take into account the waiting time to save for that extra 5%, as property prices can rise in that time period.

What are the advantages of a larger deposit?

The main advantage is that it normally gets you a lower interest rate. Rates are categorised at 95% Loan to Value, 90%, 80% and so on.

Rates at 85% will be lower than at 90%. Also, the higher the deposit, the less strict lenders are on credit score. As an example, I completed a Decision in Principle last week, which was declined at 90%. However, the lender said it would pass at 85%.

Luckily, the clients had a contingency in place – they were able to use the 85% by putting the extra deposit in.