In order to figure out how much of a down payment you’ll need, use our mortgage deposit calculator. You can also view the average down payment for first-time buyers near you using our interactive map.

Exactly how much of a down payment is required to get a home loan?

In general, mortgages are available at a loan-to-value of up to 95%, suggesting that a deposit of 5% of the purchase price is sufficient to get on the housing ladder.

If you want to buy a £200,000 home, here are the deposit amounts you’ll need:

£10,000 is a deposit of 5%.
£20,000 is a 10% down payment.
a 15% down payment of £30,000
How to increase your chances of obtaining a mortgage

Jonnie Irwin, a property expert and TV host, discusses in the video below why saving more than the required down payment is sometimes worthwhile.

How much money do you need to put down as a deposit?

To figure out how much of a down payment you’ll need, you must take into account both the average property price and the monthly repayment cost.

Your neighborhood’s average home price

Local estate agents and property portals like Rightmove and Zoopla can give you a general indication of local house costs.

The asking prices you’ll find on real estate portals and agent websites may be a little higher than the actual value of the houses.

Use the Land Registry’s price paid tool to see how much homes in the neighbourhood have sold for to get more specific information.

What is the maximum monthly payment you can make?

If you’re looking for the best deal, you may not want to settle for the lowest interest rate.

Things like product fees, early repayment penalties, and how many years you plan on taking to repay the loan must also be taken into consideration. In our guide to getting the greatest mortgage deals, we explain all of this.

Use our mortgage repayment calculator to figure out how much a mortgage would cost you each month.

If you can’t afford the repayments on a low-deposit mortgage, you’ll either have to save more money or look into programmes like Help to Buy.

Reasons to put down a larger down payment on a home

Despite the fact that a 5% deposit is required, there are numerous advantages to save more if possible.

Monthly payments that are more affordable

Your monthly mortgage payments will be less expensive if you put down a larger deposit on your home loan.
A better bargain on a mortgage
Lenders will be more willing to cut your interest rates if they perceive you as less of a risk with a greater down payment.
There is a noticeable difference in cost between 90% and 95% mortgages, for example.
Increased likelihood of acceptance
In order to determine if you can afford the mortgage repayments, all lenders conduct affordability checks based on your income and outgoings. It is more probable that you will fail these checks if you only put down a little down payment. This is because you will be required to pay a higher monthly mortgage payment.
Increased purchasing power
Because lenders normally lend up to 4.5 times your yearly pay, you may need a greater deposit to cover the value of the house if your earnings falls below that amount.
Relatively less risky
The risk of falling into a state of negative equity, in which you owe more on your mortgage than your home is worth, decreases as your equity grows. It can be difficult to move or transfer mortgages if you’re in negative equity.

Calculator for determining a down payment on a mortgage

Making a down payment can feel like an interminable process. Using our deposit calculator, you can see how much money you’ll need to put down to buy a home in your neighbourhood.

To get an idea of how long it will take, simply answer the following questions.

An interactive map shows the typical down payment for first-time homebuyers in your area.

Find out how much of a deposit, on average, first-time buyers in your area put down using the interactive map below.

To view the typical deposit paid and the proportion of the property price that it covered, simply place your cursor over a local authority or touch your screen if you’re on a mobile device.

Deposits can be swapped for cash.

In order to legally commit to the purchase of a property, a deposit is typically paid when contracts are exchanged.

While the conventional exchange deposit amount is 10% of the property price, your solicitor or conveyancer may usually work out a deal for you in which you just put down 5% of the purchase price. They can alert the seller’s conveyancer if you let them know early enough in the purchase process.

Some first-time homebuyers have been unable to access their Help to Buy Isa incentive because of the exchange deposit requirement. You can’t utilise the bonus as an exchange deposit because it’s only given upon completion; therefore, you’ll need money from another source.

Your conveyancer may be able to negotiate a lower exchange deposit if this is likely to be a problem for you.

It is a loan-to-value calculator.

Mortgages are typically referred to as having a specific “LTV.” The percentage of the purchase price that will be paid by the mortgage is known as the loan-to-value (LTV) ratio.

With a 5 percent deposit, you’d need a 95 percent loan-to-value ratio.

Enter your down payment and the property’s price in the fields below to calculate your LTV.

What you can do if you’re having trouble saving

If you’re having a hard time saving enough money for a down payment on your first house, there is help available.

Make a contribution Your deposit is 5 percent, you get up to 20 percent from the government or 40 percent if you live in London, and you obtain a mortgage to cover the remainder. Scotland’s First Home Fund follows the same model.
You acquire a portion of the property and pay rent on the rest, resulting in joint ownership.
There are certain drawbacks to buying a house with your pals, but it can work for some people.
You don’t necessary need to ask your parents or family members for money to help you with your deposit. Your home or funds could serve as security for the loan.
The government offers a 25 percent bonus on a savings account known as a “Lifetime Isa.” It’s only open to people younger than 40, and you can’t get your money out of the account until you’ve owned it for a year.

How much money do you need to put down as a deposit?

To figure out how much of a down payment you’ll need, you must take into account both the average property price and the monthly repayment cost.

Your neighborhood’s average home price

Local estate agents and property portals like Rightmove and Zoopla can give you a general indication of local house costs.

The asking prices you’ll find on real estate portals and agent websites may be a little higher than the actual value of the houses.

Use the Land Registry’s price paid tool to see how much homes in the neighbourhood have sold for to get more specific information.

What is the maximum monthly payment you can make?

If you’re looking for the best deal, you may not want to settle for the lowest interest rate.

Things like product fees, early repayment penalties, and how many years you plan on taking to repay the loan must also be taken into consideration. In our guide to getting the greatest mortgage deals, we explain all of this.

Use our mortgage repayment calculator to figure out how much a mortgage would cost you each month.

If you can’t afford the repayments on a low-deposit mortgage, you’ll either have to save more money or look into programmes like Help to Buy.

Reasons to put down a larger down payment on a home

Despite the fact that a 5% deposit is required, there are numerous advantages to save more if possible.

Monthly payments that are more affordable

Your monthly mortgage payments will be less expensive if you put down a larger deposit on your home loan.
A better bargain on a mortgage
Lenders will be more willing to cut your interest rates if they perceive you as less of a risk with a greater down payment.
There is a noticeable difference in cost between 90% and 95% mortgages, for example.
Increased likelihood of acceptance
In order to determine if you can afford the mortgage repayments, all lenders conduct affordability checks based on your income and outgoings. It is more probable that you will fail these checks if you only put down a little down payment. This is because you will be required to pay a higher monthly mortgage payment.
Increased purchasing power
Because lenders normally lend up to 4.5 times your yearly pay, you may need a greater deposit to cover the value of the house if your earnings falls below that amount.
Relatively less risky
The risk of falling into a state of negative equity, in which you owe more on your mortgage than your home is worth, decreases as your equity grows. It can be difficult to move or transfer mortgages if you’re in negative equity.
Calculator for determining a down payment on a mortgage

Making a down payment can feel like an interminable process. Using our deposit calculator, you can see how much money you’ll need to put down to buy a home in your neighbourhood.

To get an idea of how long it will take, simply answer the following questions.

An interactive map shows the typical down payment for first-time homebuyers in your area.

Find out how much of a deposit, on average, first-time buyers in your area put down using the interactive map below.

To view the typical deposit paid and the proportion of the property price that it covered, simply place your cursor over a local authority or touch your screen if you’re on a mobile device.

Deposits can be swapped for cash.

In order to legally commit to the purchase of a property, a deposit is typically paid when contracts are exchanged.

While the conventional exchange deposit amount is 10% of the property price, your solicitor or conveyancer may usually work out a deal for you in which you just put down 5% of the purchase price. They can alert the seller’s conveyancer if you let them know early enough in the purchase process.

Some first-time homebuyers have been unable to access their Help to Buy Isa incentive because of the exchange deposit requirement. You can’t utilise the bonus as an exchange deposit because it’s only given upon completion; therefore, you’ll need money from another source.

Your conveyancer may be able to negotiate a lower exchange deposit if this is likely to be a problem for you.

It is a loan-to-value calculator.

Mortgages are typically referred to as having a specific “LTV.” The percentage of the purchase price that will be paid by the mortgage is known as the loan-to-value (LTV) ratio.

With a 5 percent deposit, you’d need a 95 percent loan-to-value ratio.

Enter your down payment and the property’s price in the fields below to calculate your LTV.

What you can do if you’re having trouble saving

If you’re having a hard time saving enough money for a down payment on your first house, there is help available.

Make a contribution Your deposit is 5 percent, you get up to 20 percent from the government or 40 percent if you live in London, and you obtain a mortgage to cover the remainder. Scotland’s First Home Fund follows the same model.
You acquire a portion of the property and pay rent on the rest, resulting in joint ownership.
There are certain drawbacks to buying a house with your pals, but it can work for some people.
You don’t necessary need to ask your parents or family members for money to help you with your deposit. Your home or funds could serve as security for the loan.
The government offers a 25 percent bonus on a savings account known as a “Lifetime Isa.” It’s only open to people younger than 40, and you can’t get your money out of the account until you’ve owned it for a year.
Mortgages that are 100% financed.

You don’t need a down payment if you have a mortgage that covers the entire purchase price.

A guarantor mortgage is the only type of 100 percent mortgage available right now. If you don’t pay your mortgage, a family member will take on some of the risk by pledging their home or money as collateral.

These arrangements are extremely rare, and they entail a high risk of negative equity – when your mortgage is greater than the value of the house – so you and your family should seek professional advice before applying for one of them.

Deposits for buy-to-let

A 20% deposit of the property’s worth is normally required in order to qualify for a buy-to-let mortgage. The bigger the deposit, the better the deal you’re going to get, like with residential mortgages.

Lenders want a larger down payment for buy-to-let houses since they are considered more risky investments. Having to rely on rent from tenants to keep up with your mortgage obligations means that there is more that could go wrong.

Q&A about down payment

Some of the most frequently asked questions about property deposits can be found here.

Can I get my down payment refunded?

Property deposits are different from other types of deposits, such as a damage deposit for a vacation house. As a result, you’re only paying a small percentage of the purchase price, and the mortgage company is lending the remainder. Your mortgage lender will eventually be repaid over time.

Despite the fact that you won’t get the deposit back once you’ve purchased the house or if your move, you’ll keep it as equity.

Who do I send the down payment to for a mortgage?

At the time of contract exchange, you pay your conveyancer the deposit, despite the fact that you need to show your mortgage lender that you have the cash available.

As soon as all of the paperwork is signed and the mortgage is finished, the seller will receive your deposit and your lender’s money will cover the rest of the property’s worth.

Can I get a loan to cover my down payment on a house?

The type of loan, the lender, and the amount of money you need to borrow all play a role.

Loans are not acceptable sources of money for a deposit, and lenders will inquire as to how you came up with the money for your deposit.

However, some lenders may accept loans that are repaid when the property is sold. If your parents or a friend borrowed you money to put down on a house, this might be the situation.

Some lenders will accept a monthly-repayable loan, but they will reduce the amount you can borrow as a result. You’ll likely be able to borrow less from an institution if the money for your deposit was borrowed rather than saved.

Can my parents help with the down payment on my house?

Some formalities must be followed, such as a letter stating that the money won’t be reimbursed in any way.

Family members, however, can be limited in the percentage of the deposit they can contribute.

If I have a poor credit history, will I be required to put down a larger down payment?

Possibly so. To determine if you can repay a significant loan, lenders will look at your credit history in addition to your down payment and earnings when you apply for a mortgage. Some lenders will not lend to you if your credit history shows that you have missed payments on other loans, defaulted on obligations, or been served with a County Court Judgment (CCJ).

The best rates and greater LTVs may not be available to you from other lenders, who may require proof that you’ve made your mortgage payments for a particular period of time.