How much deposit do I need for a mortgage?

Regardless of whether you are a first time buyer or a home mover, the minimum deposit needed for a mortgage remains the same, at the very minimum you need a deposit equal to 5% of the purchase price of your new home.

Generally, lenders take the view that the higher LTV (Loan to Value - the percentage of the property value the mortgage amounts to), the higher risk the deal is, so they increase the interest rate payable on these mortgage products, for example someone with a 90% mortgage will often suffer higher interest rates than someone with a mortgage equal to 75% of the property value.

An exception to this lies within the Help to Buy Equity Loan Scheme; in this scenario, you can have a 5% deposit but take out a 75% mortgage deal, that's because the government will provide you with a 20% equity loan, taking your 5% deposit up to 25%, this does come with it's terms and conditions of course and there are a number of things to consider when looking at Help to Buy, you can find out more about it on our Help to Buy page.