Mortgage options by deposit size

General guidance, not a personal recommendation. Lender criteria, insurance terms and costs depend on the product and your circumstances. Numerical examples are illustrations unless expressly identified as an individual quote. Check current terms with your adviser and tax or legal points with the relevant specialist.

Lenders price mortgages in loan-to-value (LTV) bands. LTV is the mortgage as a percentage of the property's value, so a £190,000 loan on a £200,000 home is 95% LTV, a 5% deposit. Each band you drop, 95, 90, 85, 80, 75, down to 60, typically brings cheaper rates and a wider choice of lenders, because the lender's risk falls as your equity rises.

Here's what each deposit level realistically buys you in the current market.

5% deposit (95% LTV)

A 5% deposit means 95% loan-to-value before any added fees. Product availability, pricing and maximum lending depend on current lender criteria, affordability, credit history and property type. New-build rules can differ. A deposit band is not a guarantee of eligibility or a particular rate.

10% deposit (90% LTV)

The first meaningful price drop. The lender pool widens considerably, rates improve, and criteria loosen a touch. For many first-time buyers the realistic question is whether waiting six to twelve months to get from 5% to 10% is worth it, often it is, unless local prices are rising fast enough to eat the saving. We can put numbers on that trade-off for your actual market.

15% deposit (85% LTV)

Another step down in price, and the level where most lenders' "standard" criteria fully apply. Buyers with modest credit history issues often find 85% is where cases start placing comfortably.

25% deposit (75% LTV)

A key threshold. At 75% LTV you're into the strongly competitive part of the market: sharp rates, a wide range of lenders available, and far more forgiveness for complex income or minor credit history. Home movers with equity from a previous sale typically land here. (It's also the typical minimum deposit for buy-to-let lending, which is priced as a separate market.)

40% deposit (60% LTV)

The sharpest pricing tier at most lenders, below 60% LTV there's usually little further rate improvement. Common for downsizers and long-term owners remortgaging. If you're near this line, even a small extra payment to cross it can pay for itself in rate.

Below 5%: the special routes

• 100% mortgages for renters. A small number of lenders offer no-deposit products to renters who can evidence a sustained record of on-time rent at a similar monthly cost. Criteria are strict and property limits apply, but it's a real route for reliable renters who can't save while renting.
• Deposit Unlock. A new-build scheme where the developer funds an insurance arrangement letting participating lenders offer 95% LTV on new builds they might otherwise restrict. Participating builders and lenders only.
• Shared ownership. Buy a share of a property (often 25-75%, sometimes from 10%) and pay rent on the rest, the deposit is needed only on the share, which collapses the cash required. See our staircasing guide for how you grow your share later.
• Family-assisted structures. Joint borrower sole proprietor (JBSP) mortgages put a family member's income on the application without putting them on the deeds; family offset and security products let family savings stand behind the loan instead of being gifted. Different trade-offs, same goal: getting you into a better band than your own cash allows.

The strategy questions

Three things worth working through before you commit cash:

• Band edges matter more than averages. A deposit that lands you at 90.5% LTV prices like 95%. Sometimes a small price renegotiation or an extra £1,500 of deposit drops you a whole band.
• Don't drain yourself to zero. A 10% deposit with no money left for stamp duty, fees, furniture and a buffer is worse than 5% with a healthy reserve. Lenders also like seeing post-completion savings.
• Deposit source needs evidencing whatever the size. Savings history, gift letters, sale proceeds, the paper trail rules apply at every band (see our gifted deposit guide).

The deposit conversation and the lender conversation are really one conversation, the right structure depends on what's available at each band for your specific circumstances. That's a 15-minute call, and it's the most useful 15 minutes of most buyers' planning.