How Much Deposit Do You Really Need to Buy a House in 2026? - Clear Finance | Financial Services based in Doncaster

Buying a home is a major financial commitment, and for many buyers the biggest hurdle is getting the deposit together. If you are hoping to buy your first home in Doncaster in 2026, you may be wondering whether you really need to save tens of thousands of pounds before you can even think about applying for a mortgage.

The good news is that you may need less than you think. Mortgages are available with relatively small deposits, although having more money available can potentially open the door to a wider choice of mortgage products and more competitive rates.

Can You Buy a House With a 5% Deposit?

In many circumstances, yes. Mortgages are available that allow buyers to borrow up to 95% of a property’s value, meaning you could potentially purchase with a deposit of just 5%.

For example, on a property costing £200,000:

5% deposit: £10,000
10% deposit: £20,000
15% deposit: £30,000
20% deposit: £40,000

However, being able to obtain a mortgage with a 5% deposit doesn’t necessarily mean it will be the best option for you.

The amount you need will depend on several factors, including your income, credit history, existing financial commitments, the property you want to purchase and the individual lender’s criteria.

Is a 10% Deposit Better?

If you can comfortably increase your deposit from 5% to 10%, it may give you access to a wider selection of mortgage products.

This comes down to something called Loan to Value (LTV).

If you purchased a £200,000 property with a £20,000 deposit, you would need a £180,000 mortgage. This represents 90% of the property’s value, so your mortgage would have a 90% LTV.

Generally, the larger your deposit, the lower your LTV. A lower LTV can make you less of a lending risk in the eyes of a mortgage provider and may result in access to more competitive mortgage deals.

Should You Keep Saving for a Bigger Deposit?

This is where the answer becomes more individual.

It can be tempting to keep saving until you have the biggest possible deposit. However, waiting another year or two isn’t automatically the right decision for everyone.

You need to consider the bigger picture.

For example, could you comfortably afford the repayments with the deposit you already have? Are you currently paying rent while continuing to save? What type of property are you looking for? And importantly, do you have enough money left over after paying your deposit?

A mortgage adviser can look at your circumstances and help you understand what difference increasing your deposit could actually make.

There is little point delaying your plans simply to reach an arbitrary deposit percentage without first understanding the mortgage options potentially available to you.

Don’t Spend Every Penny on the Deposit

One mistake first-time buyers can make is concentrating entirely on their mortgage deposit and forgetting about everything else that comes with buying a home.

Your deposit is only one of the costs involved.

You may also need money for:

Solicitor and conveyancing fees
Property searches
Mortgage arrangement or valuation fees
A property survey
Buildings insurance
Removal costs
Furniture and appliances
Repairs or improvements after moving in

Keeping some savings aside can therefore be extremely important. The last thing you want is to collect the keys to your new home with nothing left in reserve for an unexpected expense.

How Much Can You Actually Borrow?

Having the deposit is only one part of getting a mortgage.

A lender will also assess whether it believes you can afford the amount you want to borrow. This can involve looking at your income, regular expenditure, loans and credit commitments, credit history and wider financial circumstances.

This is why two people with identical deposits may be offered very different mortgage options.

It is also why speaking to a mortgage adviser before you start seriously viewing properties can be worthwhile. Understanding approximately how much you may be able to borrow can give you a much more realistic property budget.

First-Time Buyer Mortgage Advice in Doncaster

If you’re planning to buy your first home, don’t assume you need to have a huge deposit before speaking to someone about your options.

At Clear Finance, we can discuss your circumstances, explain how different deposit levels could affect your mortgage options and help you understand the products that may be available.

Whether you’ve already saved your deposit or you’re still trying to work out how much you need, getting mortgage advice early can help you make more informed decisions about your next steps.

Looking for first-time buyer mortgage advice in Doncaster? Contact Clear Finance to discuss your circumstances and find out what options may be available to you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The information in this article is intended as a general guide and does not constitute personal financial advice. Mortgage availability and lending criteria vary between lenders and individual circumstances.

For more information about our Financial Services and products in Doncaster call 01302 835938

Please ’Like us’ on Facebook – https://www.facebook.com/clearfinance.net/