A 10% deposit reduces what you borrow for the same home and may give you access to cheaper mortgage deals. A 5% deposit may let you buy sooner or keep more cash available. The better choice depends on the mortgage you can afford, how long saving more would take, and the money you would have left after moving.
Written by Count Ready · Updated 7 September 2026 · General information for UK first-time buyers.
What changes between a 5% and 10% deposit?
Your deposit is the money you contribute towards the purchase. The mortgage covers the rest in a straightforward purchase. Loan-to-value, or LTV, describes the loan as a percentage of the property’s value: a 5% deposit normally means 95% LTV, while 10% means 90% LTV.
| Amount | 5% deposit | 10% deposit |
|---|---|---|
| Deposit | £13,000 | £26,000 |
| Mortgage needed | £247,000 | £234,000 |
| Loan-to-value | 95% | 90% |
| Extra deposit to reach 10% | — | £13,000 |
Illustration only, assuming the lender accepts a £260,000 valuation, with no fees added to the loan. Buying costs and emergency savings are separate. These figures are not a mortgage offer or an affordability assessment.
The larger deposit reduces the loan by £13,000. It does not reduce the price of the home by £13,000: you are paying more of the purchase price from your own money. Lower-LTV products often have lower interest rates, but a particular saving is not guaranteed. Compare products available for your circumstances at the time.
For eligibility, property restrictions and applying with a smaller deposit, use our 5% deposit mortgage guide.
How much can you put down without using every pound?
Start with money that is genuinely available for the purchase. Then subtract buying costs and the reserve you want to retain. What remains is your usable deposit.
- Buying costs: budget for conveyancing and searches, a survey, any valuation or mortgage product fee, agreed advice fees, removals and initial repairs.
- Property tax: check SDLT in England and Northern Ireland, LBTT in Scotland or LTT in Wales. First-time buyer status does not automatically make every purchase tax-free. Our UK first-time buyer tax guide explains the differences.
- Money after moving: allow for regular bills and unexpected costs. A suitable reserve depends on your essential spending, job security, dependants and the home’s condition.
For example, someone with £26,000 saved would use all of it for a 10% deposit on the home above. If they set aside an illustrative £6,000 for costs and a reserve, £20,000 would remain for the deposit. That is about 7.7%, not 10%. The £6,000 is an example, not a recommended budget for every buyer.
Putting every available pound into the property can leave you short if the boiler fails or your income falls. Money paid into a home is not readily available cash; borrowing it back later depends on lender approval and may involve costs.
Should you buy with 5% now or wait until you have 10%?
Work out the additional saving period before deciding whether waiting is worthwhile. Divide the extra deposit needed by what you can realistically save each month after your usual spending.
Using the £260,000 example: another £13,000 at £500 a month would take 26 months. At £1,000 a month it would take 13 months. This assumes a constant saving rate and property price, and ignores savings interest, bonuses and changes in buying costs.
Buying sooner may be worth exploring when
- You have an affordable mortgage option, enough cash for the purchase and a reserve afterwards.
- Saving the extra deposit would take a long time and your current housing arrangements are becoming difficult or expensive.
- The property suits your foreseeable needs, rather than being a short-term purchase you are likely to outgrow.
Saving more may be worth exploring when
- You are close to 10% and can reach it without leaving yourself short of cash.
- Current 95% mortgage repayments would stretch your household budget, or the loan you need is above what lenders would consider.
- You need time to build income evidence, address credit issues or understand a property’s costs.
Rent while saving is relevant, but comparing rent with the full mortgage payment alone can mislead. A repayment mortgage includes both interest and repayment of the loan. Ownership also brings maintenance, insurance and, for some properties, service charges and other leasehold costs.
House prices and mortgage rates can rise or fall while you wait. Neither buying now nor waiting guarantees a better financial outcome. Run both budgets using today’s information, then revisit them before making an offer.
Compare the full mortgage cost, not just the headline rate
Ask for a comparison of suitable 95% and 90% LTV products using the same purchase price, repayment method and mortgage term. Check:
- Monthly payments: can you manage them alongside household spending, including if income falls or payments rise later?
- Fees and incentives: include product fees and relevant cashback. Adding a fee to the mortgage can mean paying interest on it.
- The comparison period: compare payments and fees over the same period, and check the loan balance remaining at the end. Different fixed-rate periods are not automatically comparable.
- Flexibility: consider early repayment charges, overpayment limits and what happens if you move.
Use our mortgage repayment calculator to explore payments with a rate and term you enter. Its figures are illustrations, not available deals or a lending decision. A longer term can lower the monthly payment while increasing total interest paid.
If your borrowing limit is the main concern, start with the affordability calculator, then have the estimate checked against your income, commitments and the lender’s criteria.
What risks can a bigger deposit reduce?
A 10% deposit gives you more equity at the outset than 5%, assuming the same property value. It provides more room for a fall in value before the mortgage exceeds what the home is worth. That situation is called negative equity and can make selling or changing lender difficult.
A bigger deposit does not remove this risk or guarantee that you can remortgage later. Future property values, your remaining balance, income and lender criteria all matter. Be cautious about relying on a future remortgage to make an unaffordable purchase manageable.
Neither deposit size guarantees acceptance. Self-employed applicants, single buyers and joint buyers still need to demonstrate affordability. Adverse credit or a particular property type, including some new builds, may restrict the options or mean a larger deposit is needed.
Can family help or a scheme change the comparison?
A genuine gifted deposit may shorten the saving period, but the lender and conveyancer must check who provided it and where the money came from. A repayable family loan is different from a gift and must be disclosed. Arrangements secured against a relative’s savings or home carry separate risks for that person.
The 2025 Mortgage Guarantee Scheme supports participating lenders offering eligible high-LTV mortgages across the UK. It is a lender guarantee, not money towards your deposit or a guarantee that your application will be accepted.
Shared ownership and equity-loan arrangements need a different comparison because there may be rent, charges or a separate loan alongside the mortgage. Availability and conditions differ across the four UK nations. Check the nation-specific homeownership options in our first-time buyer guide before including a scheme in your budget.
Ask Count Ready to compare your deposit options
You do not need to settle on 5% or 10% before speaking to us. Tell us your approximate purchase budget, savings, income, regular commitments and when you hope to move. Mention any gift, credit concern or unusual income so the discussion reflects your situation.
We can assess the borrowing you need, compare suitable mortgage options available through our service and explain the costs and next steps. Advice is available by phone and online. An initial enquiry is not a mortgage application and does not guarantee approval.
The initial consultation is free. Fees for further work vary by case and will be agreed before chargeable work begins. A processing fee may apply separately from an offer fee; it is not charged in every case. Read how our mortgage advice fees work.
Prefer to call? Speak to Count Ready on 01245 934515.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Questions about choosing a deposit
Can I put down a 7% or 8% deposit instead?
Potentially. A deposit between 5% and 10% reduces the amount you borrow, but may still fall within a lender’s 95% LTV product range rather than qualify for its 90% deals. The lender’s valuation, product limits and eligibility checks determine the available options.
Does a 10% deposit guarantee a lower mortgage rate?
No. Lower-LTV products often have lower rates, but the result depends on the lender, product and your circumstances. Compare suitable deals available at the same time, including fees, rather than assuming a fixed rate reduction.
Can I use 5% even if I have enough savings for 10%?
It may be possible if a suitable lender accepts the application. Keeping cash for buying costs or a reserve can be sensible, but a larger loan may mean higher payments and more interest. Compare both options before choosing.
Is the deposit paid at exchange the same as the mortgage deposit?
They are related but not always the same amount. In England and Wales, an exchange deposit forms part of the purchase price and is governed by the contract; your conveyancer may need to agree a reduced amount if you are buying with a 5% mortgage deposit. Scotland uses missives and Northern Ireland has its own conveyancing process. Ask your solicitor what is due and when.
Should I pay off debt before saving a bigger deposit?
It depends on the debt, repayments, any settlement charges and how lenders assess your commitments. Paying down debt may help monthly affordability, while using those savings could leave you short of the required deposit. Have the two scenarios assessed before committing the money.
Sources and keeping your comparison current
See MoneyHelper’s mortgage deposit guidance and the GOV.UK scheme information linked above. This guide was checked on 7 September 2026. Rates, fees, scheme rules and lending criteria can change: ask for an up-to-date comparison before applying.