The current lockdown means our branch opening hours have changed. Please check our branch locator if you need to visit for the latest information.
The safest way to bank with us right now is from home either using our app or through Internet Banking.
Service Status: The current lockdown means our branch opening hours have changed. Please check our branch locator if you need to visit for the latest information.
The safest way to bank with us right now is from home either using our app or through Internet Banking.
Already have a current account with us?
Already have a credit card with us?
Already have a savings account with us?
Find out more
Already have an ISA with us?
Find out more
Already have investments with us?
Already got home insurance with us?
Other insurance products we offer
Already have a mortgage with us?
Find out more
Already have a loan with us?
Find out more
Already have car finance with us?
Find out more
Already got insurance with us?
Need to get in touch?
Our products
Find out more about
A mortgage deposit is the cash deposit that you pay upfront when buying a house. If you’ve got your eye on a house, you’ll need a deposit to buy it.
You’ll likely need to pay at least 5% of a property’s total value when you buy a house – can you also pay more which may mean your LTV ratio and monthly payments may be lower.
The larger a deposit you put down, the more of your property you’ll own and smaller mortgage you’ll need to get to pay the rest of the house’s value.
The size of your mortgage deposit will depend on the value of the home you want to buy. For those buying a property to live in, it's usually at least 5% or 10% of the overall property value.
For example, on a property valued at £200,000, a lender may ask for a 10% deposit – which is £20,000.
Find out more about saving for a deposit.
How much you can borrow from the lender will depend on the size of your deposit. Most lenders ask for at least 5% of the total property price, though it helps to pay more upfront as your monthly payments will generally be less.
The amount you can borrow is also dependent on other factors, including:
You can work out how much you can borrow beforehand, factoring in your monthly incomings and outgoings. Use our mortgage calculator to give you a better idea of what you can afford.
Lenders will typically have a maximum amount they can offer you, so factor this in when looking at house prices and deciding what you can afford.
According to the Money Advice Service, the national UK average deposit for first time buyers is around 20%. Deposits vary across the country and national averages can change.
In the South, especially around London, house prices tend to be more expensive so you might need more money for your deposit.
It helps to put down as much as you can comfortably afford as part of your deposit. This way, your monthly mortgage payments will be less and you’ll have a bigger share of equity in your home.
You’ll require a different kind of deposit if you’re keen on purchasing a home to rent out or as part of a shared ownership agreement.
Buy to Let mortgage deposit
With Buy to Let mortgages, the required deposit is usually 25% of the property value. The value of the deposit you put down depends on the value of the property and how much you can afford as a lump sum.
For example, on a Buy to Let property valued at £200,000, a lender may ask for a 25% deposit – which is £50,000.
Shared ownership deposit
In a shared ownership mortgage, you can buy between 25% and 75% of a property and pay rent on the remainder. You only take out a mortgage for the part of the property you own, so the deposit could be smaller.
The content on this page is for reference and does not constitute finance advice.
For impartial financial advice, we recommend government bodies like the Money Advice Service.
Find out more about mortgages.
We have a range of mortgage calculators to help you:
You can talk to us over the phone or use our mortgage video service from the comfort of your own home.
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
Telephone calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help us improve our quality of service.