---
title: "How much deposit do I need to buy a house as a first time buyer?"
description: "As a first-time buyer in the UK, the minimum deposit required to purchase a property is typically 5% of the property’s purchase price. This means, for a home valued at £250,000, you’d need at least £12,500 as a deposit. "
url: "https://mortgagelane.com/guides/mortgage-for-50k-salary/how-much-deposit-do-i-need-to-buy-a-house-as-a-first-time-buyer"
site: "Mortgage Lane"
collection: "guides"
date: "2026-06-25"
author: "Joseph Lane"
category: "Mortgage guide"
reviewed: "2026-06-25"
reading_time: "2 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

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

As a first-time buyer in the UK, the minimum deposit required to purchase a property is typically 5% of the property’s purchase price. This means, for a home valued at £250,000, you’d need at least £12,500 as a deposit. 

As a first-time buyer in the UK, the minimum deposit required to purchase a property is typically 5% of the property’s purchase price. This means, for a home valued at £250,000, you’d need at least £12,500 as a deposit.

[Affordability](https://mortgagelane.com/definitions?term=affordability)

Lending and affordability

A measure of whether the borrower can pay the mortgage on time and keep paying it, after debts, bills and living costs, including if circumstances change.

[Read the full definition of Affordability](https://mortgagelane.com/definitions?term=affordability)

Back to overview

[Mortgage for 50k Salary](https://mortgagelane.com/insights/mortgage-for-50k-salary)

Related definitions

[Loan-to-value (LTV)](https://mortgagelane.com/definitions#def-loan-to-value)

·

[Shared ownership](https://mortgagelane.com/definitions#def-shared-ownership)

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

As a first-time buyer in the UK, the minimum deposit required to purchase a property is typically 5% of the property’s purchase price. This means, for a home valued at £250,000, you’d need at least £12,500 as a deposit.

Why a Larger Deposit Can Be Beneficial

- Access to better mortgage rates: Lenders often offer more favourable interest rates to borrowers with larger deposits, as they represent a lower risk.
- Lower monthly repayments: A bigger deposit reduces the amount you need to borrow, leading to more manageable monthly payments.
- Increased mortgage approval chances: A substantial deposit can improve your loan-to-value (LTV) ratio, making you a more attractive candidate to lenders.

### Regional Variations

Deposit requirements can vary across the UK. For instance, in London, the average deposit for first-time buyers was around £124,688 in 2024, reflecting the higher property prices in the capital.

### Assistance for First-Time Buyers

Lifetime ISA (LISA): Allows individuals aged 18-39 to save up to £4,000 annually, with the government adding a 25% bonus.

First Homes Scheme: Offers new-build homes at a discount of 30% to 50% to local first-time buyers and key workers.

Shared Ownership: Enables buyers to purchase a share of a property and pay rent on the remaining portion, reducing the initial deposit required.

It’s advisable to consult with a mortgage advisor to explore these options and determine the best path to homeownership based on your financial situation.

## Talk it through with an adviser

Speak to a Mortgage Lane adviser about your circumstances and the next steps.

Published: 2026-06-25

Last reviewed: 2026-06-25

Source: https://mortgagelane.com/guides/mortgage-for-50k-salary/how-much-deposit-do-i-need-to-buy-a-house-as-a-first-time-buyer