How much deposit do I need to buy a house as a first time buyer?

A first-time buyer on a £50,000 salary typically needs a minimum deposit of 5% of the property price. A 5% deposit on a £250,000 home is £12,500. Larger deposits of 10% or more usually unlock lower interest rates, because a bigger deposit reduces the lender's risk.

The usual minimum is 5% of the price or the valuation, whichever is lower, which means a 95% loan-to-value mortgage. The government's 2025 Mortgage Guarantee Scheme supports eligible mortgages above 90% and up to 95% loan-to-value through participating lenders. Some routes need less cash of your own: some lenders count a genuine family discount (gifted equity) or, in England, a Right to Buy discount towards the deposit, and a small number of lenders offer 98% or even 100% loan-to-value products to first-time buyers on strict criteria. A larger deposit widens the choice of lenders and of the properties they will accept.

Yes, first-time buyers can obtain a guest house mortgage in the UK if the business is already trading profitably or supported by strong income evidence, though lender choice may be more limited.

Yes, but it is harder as a first-time buyer. Fewer lenders accept applicants who do not already own a home, and those that do often require a minimum income, a larger deposit and charge higher rates. You would also forfeit first-time buyer Stamp Duty relief, and a property bought purely to let usually attracts the additional property surcharge.

There is no universal answer; it depends on your finances, job security and local market rather than timing alone. Buying now ends rent and starts building equity, but waiting to grow a larger deposit can mean lower borrowing costs and access to better rates. The key factors are deposit size, affordability at current interest rates, and how long you intend to stay.