UK Mortgage Deposit Calculator 2025

Calculate Deposit Requirements

Enter the property price and desired LTV ratio to see your deposit requirements. Our calculator shows you the exact deposit amount needed, compares it with your current savings, and provides guidance on additional costs to budget for your property purchase.

Property Price (£)

Loan-to-Value Ratio (%)

Current Savings (£)

Understanding UK LTV Ratios

Loan-to-Value (LTV) is the percentage of the property value that you borrow. Lower LTV typically means better interest rates and more lender options.

Common LTV Bands: 60%, 75%, 80%, 85%, 90%, and 95%. Each band typically offers different interest rates, with the best rates usually at 60-80% LTV.

First-Time Buyers: Can access 95% LTV mortgages, though 90% LTV often provides better rates. Use our affordability calculator to see how much you can borrow at different LTV levels.

Rate Impact: Moving from 95% to 90% LTV can reduce your interest rate by 0.5-1%, saving thousands over your mortgage term.

UK Property Purchase Costs

Beyond your deposit, budget for these essential costs:

Survey costs: £300-£1,500 (depending on property type and survey level)
Legal fees: £500-£1,500 (conveyancing and searches)
Stamp duty: Use our stamp duty calculator for exact amounts
Mortgage fees: Arrangement, valuation, and broker fees
Moving costs: Removals, utility connections, and immediate repairs
Insurance: Buildings insurance (required) and contents insurance

Total additional costs typically range from £2,000-£8,000 depending on property value and location.

Deposit Saving Strategies

Lifetime ISA: Get 25% government bonus on savings up to £4,000 annually. Use our Lifetime ISA calculator to see potential returns.
Help to Buy ISA: Closed to new applicants but existing savers can continue earning bonuses.
Family Gifts: Most lenders accept gifted deposits from immediate family members with proper documentation.
Shared Ownership: Buy a share of a property with a smaller deposit. Explore shared ownership options.
Regular Savings: Set up automatic transfers to build your deposit systematically over time.

Related Calculators

How to Use This Deposit Calculator

Follow these 3 simple steps to calculate your mortgage deposit requirements, understand LTV ratios, and plan your property purchase budget effectively.

Enter Your Property Price

Start by entering the property purchase price (e.g., £300,000). This is the total price you're paying for the property, not the mortgage amount. UK property prices vary significantly by region: London average £535,000, South East £380,000, North West £220,000, Scotland £190,000 (October 2025 data). Use accurate property valuations from estate agents, online property portals (Rightmove, Zoopla), or recent sold prices for similar properties in the area. For new builds, use the developer's asking price. For auction properties, use your maximum bid plus fees.

💡 Property Valuation Tip: Get professional valuations from 2-3 estate agents (free service). Compare with recent sold prices on Land Registry (£3 per property). For mortgage purposes, lenders conduct their own valuation (£250-500 fee) which may differ from purchase price. If lender's valuation is lower than purchase price, you'll need a larger deposit to maintain your target LTV. Use our Affordability Calculator to see maximum property price you can afford.

Select Your Target LTV Ratio

Choose your desired Loan-to-Value (LTV) ratio (e.g., 80%). LTV is the percentage of the property value you're borrowing. Lower LTV = larger deposit = better interest rates. Common UK LTV bands: 60% (40% deposit, best rates 4.2-4.8%), 75% (25% deposit, excellent rates 4.3-4.9%), 80% (20% deposit, very good rates 4.5-5.2%), 85% (15% deposit, good rates 4.7-5.5%), 90% (10% deposit, competitive rates 4.8-5.8%), 95% (5% deposit, higher rates 5.5-6.5%). First-time buyers typically choose 90-95% LTV for affordability, while home movers often achieve 75-80% LTV using equity from previous property.

⚠️ LTV Band Impact: Moving from 95% to 90% LTV saves 0.5-1.0% on interest rates, reducing monthly payments by £150-250 on a £250,000 mortgage (£4,500-7,500 over 2 years). Moving from 90% to 80% LTV saves another 0.3-0.6%, reducing payments by £75-150/month (£2,250-4,500 over 2 years). The biggest rate improvements occur at 90%, 85%, 80%, 75%, and 60% LTV thresholds. Balance deposit size against keeping emergency savings (3-6 months expenses) and investment opportunities.

Enter Your Current Savings and Review Results

Enter your current savings available for deposit (e.g., £50,000). Include all funds you can use: cash savings, ISAs, Lifetime ISA (with 25% bonus), Help to Buy ISA, gifted deposits from family, proceeds from property sales, or investment liquidations. The calculator shows: (1) Required Deposit (e.g., £60,000 for £300k property at 80% LTV), (2) Loan Amount (e.g., £240,000), (3) Shortfall/Surplus (e.g., £10,000 shortfall if you have £50k), (4) Deposit Percentage (20%), (5) Loan Percentage (80%), (6) Additional Costs to Budget (£2,000-8,000 for stamp duty, legal fees, surveys, moving costs), (7) Recommended Total Savings (deposit + additional costs).

✅ Savings Strategy: If you have a shortfall: (1) Use Lifetime ISA to save £4,000/year + £1,000 government bonus (25%), (2) Accept gifted deposits from family (requires gifted deposit letter), (3) Consider shared ownership (5-10% deposit on share value, not full price), (4) Extend saving period with automatic monthly transfers, (5) Explore government schemes (Help to Buy, First Homes). If you have surplus: Keep 3-6 months emergency fund, budget for additional costs (£2,000-8,000), consider larger deposit for better LTV band and lower rates. Use our Lifetime ISA Calculator to maximize government bonuses.

Important Deposit Planning Reminders

LTV Bands Matter: Moving from 95% to 90% LTV saves £150-250/month on a £250,000 mortgage (0.5-1.0% rate reduction). Moving from 90% to 80% LTV saves another £75-150/month (0.3-0.6% rate reduction). The biggest rate improvements occur at 90%, 85%, 80%, 75%, and 60% LTV thresholds. Even small deposit increases can unlock better rate bands.
Budget for Additional Costs: Beyond your deposit, budget £2,000-8,000 for stamp duty (use our Stamp Duty Calculator), legal fees (£500-1,500), surveys (£300-1,500), mortgage fees (£0-2,000), moving costs (£500-2,000), and buildings insurance (£200-600/year). First-time buyers get stamp duty relief up to £425,000.
Maximize Government Bonuses: Lifetime ISA provides 25% government bonus on savings up to £4,000/year (£1,000 free money). Over 4 years, save £16,000 + £4,000 bonus = £20,000. Must be used for first home under £450,000 or retirement. Use our Lifetime ISA Calculator to plan.
Gifted Deposits Are Accepted: Most UK lenders accept gifts from immediate family (parents, grandparents, siblings). Requires gifted deposit letter confirming it's a gift (not a loan), proof of donor's funds, and evidence of transfer. Some lenders require the gift to be in your account for 3-6 months before application. Average gifted deposit in UK: £25,000-30,000.
Professional Advice: This calculator provides deposit estimates only. For personalized advice on optimal deposit size, LTV selection, government schemes, and deposit sources based on your circumstances, consult FCA-regulated mortgage advisors who can assess your full financial situation and recommend appropriate strategies.

FCA Compliance Notice

This calculator provides mortgage deposit estimates for informational purposes only. It does not constitute financial, mortgage, or investment advice. Actual deposit requirements depend on individual circumstances including property value, lender policies, credit score, income, employment type, and mortgage product chosen. UK mortgage deposits typically range from 5% to 40% of property value, with minimum 5% for residential mortgages (95% LTV) and minimum 25% for buy-to-let mortgages (75% LTV). Lower LTV ratios (larger deposits) typically result in better interest rates: 60% LTV = 4.2-4.8%, 75% LTV = 4.3-4.9%, 80% LTV = 4.5-5.2%, 85% LTV = 4.7-5.5%, 90% LTV = 4.8-5.8%, 95% LTV = 5.5-6.5% (October 2025 rates). Moving from 95% to 90% LTV can save £150-250/month on a £250,000 mortgage, totaling £4,500-7,500 over a 2-year fixed term. Beyond your deposit, budget for additional costs: stamp duty (£0-30,000+, first-time buyers get relief up to £425,000), solicitor fees (£500-1,500), survey costs (£300-1,500), mortgage arrangement fees (£0-2,000), moving costs (£500-2,000), and buildings insurance (£200-600/year). Total additional costs typically £2,000-8,000 depending on property value and location. Government schemes can help: Lifetime ISA provides 25% bonus on savings up to £4,000/year (£1,000 free), shared ownership requires deposit on share value only (5-10% of share, not full price), First Homes scheme offers 30-50% discount. Most lenders accept gifted deposits from immediate family with proper documentation (gifted deposit letter, proof of funds, evidence of transfer). Lender valuations may differ from purchase price - if lender values property lower, you'll need larger deposit to maintain target LTV. Interest rates, lender policies, and mortgage products can change frequently. Always obtain personalized quotes from multiple lenders and consult FCA-regulated mortgage advisors for professional guidance on deposit planning, LTV selection, government schemes, and deposit sources based on your full financial circumstances. MortgagePro.uk is a comparison tool and not a financial advisor, mortgage lender, or mortgage broker.

Mortgage Deposit FAQs

Essential information about UK mortgage deposits and LTV ratios

What is the minimum deposit required for a UK mortgage?

The minimum deposit for most UK mortgages is 5% of the property value, though some lenders offer 95% LTV mortgages. A 10% deposit typically provides access to better interest rates and more lender options.

How does LTV (Loan-to-Value) ratio affect my mortgage?

LTV ratio determines your interest rate and available mortgage products. Lower LTV ratios (higher deposits) typically result in better rates. Common LTV bands are 60%, 75%, 80%, 85%, 90%, and 95%, with rates improving at each level.

What additional costs should I budget for beyond the deposit?

Budget for stamp duty (if applicable), solicitor fees (£500-£1,500), survey costs (£300-£1,000), mortgage arrangement fees, valuation fees, and moving costs. These typically add £2,000-£5,000 to your total costs.

Can I use gifted money for my mortgage deposit in 2025?

Yes, most UK lenders accept gifted deposits from immediate family members (parents, grandparents, siblings). You'll need a gifted deposit letter confirming it's a gift (not a loan), proof of the donor's funds, and evidence of the transfer. Some lenders require the gift to be in your account for 3-6 months before application.

How much deposit do first-time buyers need in 2025?

First-time buyers can access mortgages with as little as 5% deposit (95% LTV), though 10% deposit (90% LTV) typically offers better rates and more lender options. For a £250,000 property, you'd need £12,500 (5%) or £25,000 (10%). Government schemes like Lifetime ISA provide 25% bonus to boost your deposit savings.

What LTV ratio gives the best mortgage rates?

The best mortgage rates are typically available at 60% LTV (40% deposit) or lower. However, 75-80% LTV (20-25% deposit) offers excellent rates with more manageable deposit requirements. As of September 2025, rates at 60% LTV are around 4.2-4.8%, while 80% LTV rates are 4.5-5.2%, and 90% LTV rates are 4.8-5.8%.

How long does it take to save a mortgage deposit?

Saving time varies by income and target deposit. For a £250,000 property requiring £25,000 deposit (10%), saving £500/month takes 50 months (4+ years), while £1,000/month takes 25 months (2+ years). Using a Lifetime ISA with 25% government bonus can reduce this by 20%. Use our deposit savings calculator to create a personalized savings plan.

Does a larger deposit always mean better mortgage deals?

Generally yes, but with diminishing returns. Moving from 95% to 90% LTV saves significant interest (0.5-1% rate reduction). Moving from 80% to 75% LTV saves less (0.1-0.3%). The biggest rate improvements occur at 90%, 85%, 80%, 75%, and 60% LTV thresholds. Balance deposit size against keeping emergency savings and investment opportunities.

Understanding UK Mortgage Deposits in 2025

What Is a Mortgage Deposit?

A mortgage deposit is the upfront payment you make when purchasing a property, representing the portion of the property value you pay from your own funds. The remaining amount is borrowed from a lender as your mortgage. In the UK, deposits typically range from 5% to 40% of the property value, with the percentage directly affecting your loan-to-value (LTV) ratio and the interest rates available to you.

Example: For a £300,000 property with a 10% deposit, you'd pay £30,000 upfront and borrow £270,000 (90% LTV). With a 20% deposit, you'd pay £60,000 and borrow £240,000 (80% LTV). The larger deposit reduces your loan amount, monthly payments, and typically secures better interest rates.

How LTV Ratios Work

Loan-to-Value (LTV) ratio is the percentage of the property value you're borrowing. It's calculated as: LTV = (Loan Amount ÷ Property Value) × 100. Lower LTV means larger deposit and typically better mortgage terms.

2025 LTV Bands & Typical Interest Rates

60% LTV (40% deposit): Best rates available, 4.2-4.8% (2-year fixed), 4.5-5.0% (5-year fixed)
75% LTV (25% deposit): Excellent rates, 4.3-4.9%, wide lender choice
80% LTV (20% deposit): Very good rates, 4.5-5.2%, most popular band
85% LTV (15% deposit): Good rates, 4.7-5.5%, good lender availability
90% LTV (10% deposit): Competitive rates, 4.8-5.8%, suitable for first-time buyers
95% LTV (5% deposit): Higher rates, 5.5-6.5%, limited lender options

Rate Impact: Moving from 95% to 90% LTV can save £150-£250/month on a £250,000 mortgage, totaling £4,500-£7,500 over a 2-year fixed term.

Deposit Requirements by Property Type

Different property types and buyer situations have varying deposit requirements:

First-Time Buyers (Residential): Minimum 5% deposit, though 10% recommended for better rates. Average first-time buyer deposit in 2025: £35,000-£45,000 depending on region.
Home Movers (Residential): Typically 10-20% deposit from equity in previous property. Average: 20-25% deposit.
Buy-to-Let Properties: Minimum 25% deposit required by most lenders, with 30-40% common for best rates. See our Buy-to-Let Calculator.
New Build Properties: Some developers offer incentives (5% deposit schemes), but standard deposits apply (10-20%).
Shared Ownership: Deposit calculated on share purchased (typically 5-10% of share value, not full property value). Explore Shared Ownership options.

Additional Costs Beyond Your Deposit

Your deposit is just one part of the upfront costs. Budget for these essential expenses:

Cost Item	Typical Range	Notes
Stamp Duty	£0-£30,000+	First-time buyers: £0 up to £425k. Use our Stamp Duty Calculator
Solicitor Fees	£500-£1,500	Conveyancing, searches, Land Registry fees
Survey Costs	£300-£1,500	Basic valuation to full structural survey
Mortgage Fees	£0-£2,000	Arrangement, booking, valuation fees
Moving Costs	£500-£2,000	Removals, storage, utility connections
Buildings Insurance	£200-£600/year	Required by lenders from completion

Total Additional Costs: Typically £2,000-£8,000 depending on property value and location. For a £300,000 property, budget £4,000-£6,000 beyond your deposit.

Strategies to Build Your Deposit Faster

💰 Lifetime ISA

Save up to £4,000/year and receive 25% government bonus (£1,000). Over 4 years, save £16,000 + £4,000 bonus = £20,000. Must be used for first home under £450,000 or retirement. Use our Lifetime ISA Calculator.

🎁 Gifted Deposits

Most lenders accept gifts from immediate family. Requires gifted deposit letter, proof of donor's funds, and evidence of transfer. Average gifted deposit in UK: £25,000-£30,000. Check our Gifted Deposit Guide.

📊 High-Interest Savings

Regular savings accounts offer 5-7% interest (2025 rates). Saving £500/month at 6% interest grows to £31,000 in 5 years vs £30,000 without interest. Use our Deposit Savings Calculator to plan.

🏠 Shared Ownership

Buy 25-75% share of property with smaller deposit (5-10% of share value, not full price). For £300k property, buy 50% share (£150k) with £7,500-£15,000 deposit vs £30,000 for full purchase.