How much deposit do I need?
UK buyers usually need at least a 5% deposit, but larger deposits unlock lower loan-to-value tiers and often better mortgage rates. A 10% deposit is more widely available than 5%, while 20-25% deposits tend to access more competitive deals.
LTV explained
Loan-to-value, or LTV, is the mortgage as a percentage of the property price. A 30,000 pound deposit on a 300,000 pound property means a 270,000 pound mortgage and 90% LTV. Lower LTV usually means lower risk for the lender and a cheaper mortgage rate.
Lifetime ISA vs Help to Buy ISA
Help to Buy ISAs are closed to new applicants, but existing accounts can still be used if eligible. Lifetime ISAs remain available to eligible first-time buyers and add a 25% government bonus on contributions up to 4,000 pounds per tax year.
First-time buyer schemes
First-time buyer support changes over time and depends on location, property price, and personal circumstances. Always check current scheme rules, LISA withdrawal conditions, and mortgage lender criteria before committing to a savings plan.