Myth Buster: "I Need a 15% Deposit to Buy a House"
- Mar 27
- 3 min read
It’s one of the biggest barriers stopping people from even exploring their options:
“There’s no point looking - I need at least 15% saved.”
Let’s clear that up.
You do not automatically need a 15% deposit to buy a home in the UK.
In fact, there are several routes available depending on your circumstances.
Where the 15% Myth Comes From
Years ago, larger deposits were often the norm, especially after tighter lending rules were introduced.
Because of that, many buyers still believe they must save:
15%
20%
Or even 25%
Before speaking to a broker.
But the market has evolved - and so have lending options.
Yes, 5% Deposits Are Common
Many mainstream lenders offer mortgages at 95% Loan-to-Value (LTV), meaning you may only need a 5% deposit.
For example:
£200,000 property
5% deposit = £10,000
That’s significantly lower than 15%.
What About 2% Deposit Mortgages?
Some lenders have introduced products requiring as little as a 2% deposit (98% LTV), subject to criteria.
This means:
£200,000 property
2% deposit = £4,000
These products are typically designed to help first-time buyers who can afford monthly repayments but struggle to save larger deposits due to rent and cost of living pressures.
Availability and eligibility vary, but they do exist.
£5,000 Deposit Mortgages
There are also lenders offering products structured around a minimum cash deposit amount, such as £5,000.
This can make home ownership accessible for buyers purchasing at certain price points, particularly in areas where property values are lower.
Instead of focusing purely on percentages, these products consider affordability and overall lending criteria.
100% Mortgages - Are They Real?
Yes - in certain circumstances.
While traditional 100% mortgages (no deposit at all) are rare, there are options such as:
Guarantor mortgages
Family-assisted mortgages
Savings-backed mortgages
Track-record or rental history-based schemes
These can allow you to borrow the full purchase price, often with a family member providing security or support.
They aren’t suitable for everyone - but they are available in the right situations.
Why Deposit Size Still Matters
A larger deposit can:
Unlock better interest rates
Reduce monthly repayments
Increase lender choice
However, waiting years to save 15% or 20% may not always be necessary - especially if house prices continue to rise during that time.
The key question isn’t:
“Have I saved 15%?”
It’s:
“What are my options right now?”
Affordability Is Just as Important
Lenders look at more than just your deposit.
They assess:
Income and job stability
Credit history
Existing financial commitments
Overall affordability
Some buyers assume they’re years away from purchasing - when in reality, they may already be closer than they think.
Don’t Disqualify Yourself Before Asking
Too many people rule themselves out based on outdated information.
At Endurance Mortgages, we regularly speak to buyers who believed they needed a much larger deposit - only to discover suitable options already exist. Every situation is different and every lender has different criteria.
That’s why speaking to a broker early can be valuable - even if you’re just exploring.
The Bottom Line
You don’t automatically need:
15%
20%
Or years of saving
You may be able to buy with:
5%
2%
£5,000
Or in some cases, structured 100% solutions
If you’d like to understand what’s possible based on your circumstances, get in touch with our team.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Some Buy to Let mortgages are not regulated by the Financial Conduct Authority A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
Endurance Mortgages Ltd is an appointed representative of The Right Mortgage Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15060351. Registered Address: Worting House, Church Lane, Basingstoke, Hampshire RG23 8PX.
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