The minimum deposit for buying a house is usually 5% of the purchase price. That means you’ll typically need to contribute at least 5%, with your mortgage covering the remaining 95%.

Office for National Statistics (ONS) figures for April 2026 show the average first time buyer property in Manchester cost £232,000, meaning a 5% deposit would be around £11,600.

Saving your deposit is usually the first major milestone on the journey to buying a home. Understanding how much you’ll need, and how your deposit affects your mortgage options, can make planning much easier.

Is a 5% Deposit Enough?

In many cases, yes.

A number of mortgage lenders offer 95% loan to value mortgages, meaning they’ll lend up to 95% of the property’s value while you provide the remaining 5%.

Meeting the minimum deposit requirement doesn’t automatically mean every mortgage will be available to you.

Lenders will still assess your income, spending, credit history and overall affordability before deciding how much they’re prepared to lend.

Even so, a 5% deposit has helped many first time buyers take their first step onto the property ladder without waiting years to save a much larger amount.

What Are the Benefits of Saving a Larger Deposit?

Although buying with a smaller deposit is possible, saving more can put you in a stronger position.

The more money you contribute yourself, the less risk the lender is taking. This is measured using your loan to value, often shortened to LTV.

A lower loan to value may give you access to:

  • A wider choice of mortgage products.
  • Lower interest rates.
  • Smaller monthly repayments.
  • Less interest paid over the lifetime of your mortgage.

That doesn’t necessarily mean you should delay buying until you’ve saved the largest deposit possible.

For many people, buying sooner with a smaller deposit makes more sense than continuing to rent while trying to save for several more years.

What If I’m Struggling to Save a Deposit?

Saving for a deposit isn’t always straightforward, particularly if you’re paying rent while trying to put money aside each month.

If progress feels slower than you’d hoped, there may be more options available than you realise.

Many first time buyers receive a gifted deposit from a close family member. This is money given towards your purchase that doesn’t need to be repaid, provided it meets your lender’s requirements.

If you’re eligible, a Lifetime ISA can also help your savings grow more quickly. You can save up to £4,000 each tax year, with the government adding a 25% bonus, up to £1,000 annually.

There are eligibility rules and property price limits, so it’s worth understanding how the scheme works before relying on it as part of your deposit.

Some buyers decide to increase their deposit gradually, while others find that reaching 5% is enough to begin looking at their mortgage options.

Every buyer’s circumstances are different, so struggling to save a deposit doesn’t always mean buying a home is out of reach. Understanding the options available can often open up opportunities you hadn’t considered.

Will I Ever Need More Than a 5% Deposit?

Sometimes.

Although 5% is the minimum for many residential mortgages, there are situations where lenders may ask for a larger deposit.

This could include buying certain types of property, having a limited credit history, being self-employed or applying in circumstances where the lender considers there to be more risk.

If you’re buying a new build home, some lenders may also have different deposit requirements depending on the property and the mortgage product you’re applying for.

Every lender assesses applications differently, so the amount you’ll need isn’t always the same.

Does My Deposit Affect How Much I Can Borrow?

Your deposit is one part of the picture, though it isn’t the only factor lenders consider.

They’ll also look at your income, regular spending, existing financial commitments and credit history when deciding how much they’re prepared to lend.

A larger deposit can strengthen your application by reducing the amount you need to borrow, though you’ll still need to meet the lender’s affordability requirements.

Can I Use a Gifted Deposit?

Yes, many mortgage lenders accept gifted deposits.

They’re most commonly provided by parents or close family members, though some lenders will accept gifts from other relatives.

The lender will usually ask for written confirmation that the money is a genuine gift rather than a loan, as this helps them understand there won’t be another financial commitment to take into account.

Gifted deposits are particularly common among first time buyers and can make reaching the minimum deposit much more achievable.

How Much Should I Aim to Save?

Knowing that 5% is often enough can make buying a home feel much more achievable, though that doesn’t mean it’s the right deposit for everyone.

Some buyers prefer to move as soon as they’ve saved the minimum, while others choose to wait a little longer so they can borrow less and potentially benefit from lower mortgage rates.

Rather than aiming for one specific figure, it’s often more useful to understand what different deposit amounts could mean for your mortgage options, monthly repayments and the overall cost of borrowing.

If you’re unsure how much deposit you may need, it’s something our mortgage advisors in Manchester are asked about regularly.

We’ll explain the options available, answer your questions and help you understand what could be possible based on your circumstances.

Date Last Edited: September 3, 2026