How Much Deposit Do You Really Need in 2026?

If you’re thinking about buying a home this year, one of the first questions you’ll probably ask is:

“How much deposit do I actually need?”

And like most things in the mortgage world, the answer is: it depends.

But don’t worry, we’re going to break it down simply, so you know what’s realistic in 2026 and what your options are.

In 2026, some lenders still offer mortgages with a minimum 5% deposit.

So, if you’re buying a home for £250,000, that’s a deposit of £12,500.

That’s the good news. But what people often don’t realise is that a 5% deposit isn’t always the best option, it’s just the minimum.

What most buyers actually put down

In reality, many buyers are putting down closer to:

• 10% deposit – a very common starting point
• 15–20% deposit – where you’ll start to see noticeably better deals
• 25%+ deposit – typically unlocks the most competitive rates

Why? Because the more you put down, the lower the risk for the lender.

And lower risk = better interest rates.

Some lenders are now pushing the boundaries of what a “low deposit” really looks like. For example, Accord Mortgages currently offers a product where first-time buyers can get on the ladder with just a £5,000 deposit, up to 99% loan-to-value, although this comes with strict criteria and limited property types. Santander UK has also launched its “My First Mortgage”, allowing buyers to borrow up to 98% of a property’s value with a minimum £10,000 deposit. These products can be a lifeline for those struggling to save, but they do come with trade-offs, higher interest rates, fewer options, and tighter lending criteria, so they’re not the right fit for everyone.

Why your deposit matters more than ever in 2026

Your deposit doesn’t just affect whether you get a mortgage; it directly impacts:

1. Your interest rate

Smaller deposit = higher risk = higher rate
Bigger deposit = lower risk = better rate

Even a 5% difference in deposit size can significantly change your monthly payments.

2. Your mortgage options

With a larger deposit, you’ll typically have:

• More lenders to choose from
• More flexible products
• Better fixed-rate deals

3. Your affordability

Lenders in 2026 are cautious. They look at:

• Your income
• Your spending
• Your financial stability

And your deposit plays a big role in how comfortable they feel lending to you.

First-time buyer schemes in 2026

If saving a deposit feels like the hardest part, you’re not alone but there are still options available:

Low-deposit mortgages

There are now more 95% mortgages (5% deposit) available than we’ve seen in years.

Some lenders are even offering:

• 98% mortgages (meaning just a 2% deposit)

But these often come with:

• Stricter criteria
• Limited property types
• Higher interest rates

Government-backed schemes

Depending on your situation, you may be able to access schemes like:

• Shared ownership
• Deposit support options (on certain new builds)

These can help bridge the gap if your savings aren’t quite there yet.

A quick reality check: the “true cost” of buying

It’s easy to focus purely on the deposit, but don’t forget:

You’ll also need to budget for:

• Legal fees
• Surveys
• Moving costs
• A financial buffer

Low-deposit mortgages can get you on the ladder faster, but they don’t always mean cheaper overall.

What’s happening in the market right now?

If 2025 felt uncertain, 2026 hasn’t exactly settled down.

We’re currently seeing:

• Mortgage rates are sitting around 4.8%–5%+ for many deals
• Rates rising again in recent weeks due to global economic tensions
• Lenders repricing or pulling deals quickly

What’s driving this?

Ongoing global instability (including conflict in the Middle East)
Rising energy costs
Uncertainty around inflation and interest rates

All of this means one thing: The market is still a bit unpredictable.

And that makes your deposit even more important, because it can help protect you from higher rates.

So, how much deposit do you need?

Here’s the honest answer:

• Minimum: 5% (gets you in the door)
• Comfortable: 10% (more choice, better rates)
• Strong position: 15–25% (best deals, lower payments)

But the “right” deposit depends on:

• Your income
• Your monthly budget
• Your long-term plans

Buying a home in 2026 is still absolutely achievable, but it’s about being strategic.

A bigger deposit can:
✔ Reduce your monthly payments
✔ Give you access to better deals
✔ Make lenders more confident in your application

But if you’re ready now, there are still plenty of ways to make a smaller deposit work.

Need help figuring it out?

Everyone’s situation is different, and that’s where good advice makes all the difference.

If you’re not sure how much deposit you need (or what you could realistically afford), we’re here to help you work it out, simply and honestly. Drop us a message to arrange a no-obligation chat.