First-time buyers

How much deposit might you need?

Explore how deposit size affects loan-to-value and the mortgage options available.

6 min readUpdated

Deposit and loan-to-value

Loan-to-value compares the mortgage with the property value. A £180,000 mortgage on a £200,000 home is 90% LTV, meaning a £20,000 deposit.

Why thresholds matter

Mortgage products are often grouped into LTV bands. Crossing a threshold can affect pricing, but using every pound as a deposit can leave too little for fees or emergencies.

Look beyond the purchase price

Budget for conveyancing, surveys, moving, initial repairs and any applicable property tax. Keep a buffer rather than relying on the maximum a lender might offer.