How Much Deposit Do You Really Need to Buy a Home in 2025?

If you’re looking to step onto the property ladder in 2025, one of the biggest questions you’ll face is: how much deposit do I actually need? With shifting mortgage rules, rising property prices, and evolving lender criteria, the answer isn’t always straightforward.

In this post, we break down what you really need to know about deposits in today’s UK housing market — whether you’re a first-time buyer or moving up the ladder. 

Minimum Deposit Requirements

The absolute minimum deposit you’ll need in 2025 is typically 5% of the property’s value. This is the threshold for most 95% loan-to-value (LTV) mortgages, which have made a strong return thanks to government-backed lending schemes and growing lender confidence.

 Example: For a home worth £250,000, a 5% deposit would be £12,500.

However, while 5% is possible, 10% or more is recommended if you want better interest rates and a wider choice of lenders.

Why More Is (Usually) Better

While a 5% deposit can get you on the ladder, it often comes with:

• Higher interest rates
• Stricter lending criteria
• Fewer mortgage deals to choose from
  

If you can stretch to a 10% or 15% deposit, you’ll typically:

• Access better rates
• Enjoy lower monthly repayments
• Have a greater chance of being accepted by lenders

In today’s climate, with mortgage rates still adjusting after a volatile couple of years, lenders are rewarding larger deposits with more attractive terms.

Deposit Examples by Property Value

Note: Some new-build homes, especially flats, may require a minimum 10%–15% deposit even if you’re eligible for 95% LTV on paper.

Deposit Expectations by Region

In 2025, average property prices vary significantly across the UK — and so do deposit amounts. Here’s a rough guide:

• Yorkshire & the Humber – Average price: £210,000 → 10% deposit = £21,000
• London – Average price: £540,000 → 10% deposit = £54,000
• North West – Average price: £210,000 → 10% deposit = £21,000
• South East – Average price: £400,000 → 10% deposit = £40,000

(Source: UK Land Registry, March 2025)

Help for First-Time Buyers

There are still schemes to help first-time buyers bridge the deposit gap:

• Shared Ownership
• First Homes Scheme
• Lifetime ISA (LISA) – Get a 25% government bonus on savings up to £4,000/year
• Guarantor Mortgages – Parents can help by using their income or savings

Speak to a mortgage broker or adviser to find the best path based on your circumstances.

Final Thoughts

In 2025, the deposit you need will depend on your financial situation, the property you want, and how competitive you want your mortgage deal to be. While 5% deposits are possible, aiming for 10% or more gives you a stronger footing in today’s market.

If you’re just starting your home buying journey, we’re here to help. At Home & Manor, we work closely with trusted mortgage advisers to support buyers every step of the way.

Ready to take the first step?

Contact our team today and we’ll help you get moving