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How Much Deposit Do First-Time Buyers Need in the UK in 2025?

  • Writer: sheikhrahat
    sheikhrahat
  • Nov 14
  • 4 min read

Entering the property market as a first-time buyer in 2025 can be exciting and daunting. One key question many ask is: how much deposit do first-time buyers need in the UK? This guide offers clear answers and practical advice, helping new buyers understand the deposit requirements and how it ties into UK property investment strategies. Whether you are considering real estate investment UK for the future, looking for new build property investment UK, or exploring options through the most reliable property investment companies UK, knowing the deposit landscape is essential.


1. What is a Property Deposit?


A property deposit is the initial sum of money you pay upfront when purchasing a home. It reduces your mortgage loan amount. Generally, the larger your deposit, the better the mortgage terms and interest rates are. In 2025, deposits will vary by property type, lender, and buyer's circumstances.


2. Minimum Deposit Requirement for First-Time Buyers in 2025


The minimum deposit typically required by most UK lenders in 2025 is 5% of the property price. This means for a £250,000 home, a first-time buyer needs at least £12,500 as a deposit. Some lenders offer 95% mortgages with 5% deposits but these usually charge higher interest rates.


Most buyers, however, aim for a 10% deposit, which secures better mortgage rates and options. To unlock the most attractive deals, deposits of 25% or more are ideal.


3. Deposit Examples by Property Price


  • N£100,000 property: £5,000 deposit (5%)

  • £250,000 property: £12,500 deposit (5%)

  • £300,000 property: £30,000 deposit (10%)


Mortgage fees, stamp duty, and other upfront costs add to the total amount needed to buy a home


4. Government Schemes to Help First-Time Buyers


Several schemes in 2025 can reduce deposit burdens, especially attracting first-time buyers interested in new-build property investments.investments.


5. First Homes Scheme


This allows buyers to purchase homes at 30% to 50% below market values, reducing the required deposit. It applies mainly to newly built builds and is available in England. Eligibility requires an income below £80,000 (£90,000 in London) and first-time buyer status.


6. Shared ownership


Buy a share (25%-75%) of the property and pay rent on the rest. This reduces how much deposit you need upfront.


7. Deposit Unlock Scheme


This new scheme enables you to secure a new build home with just a 5% deposit.


8. Lifetime ISA (LISA)


You can save up to £4,000 per year with a 25% government bonus towards your home deposit.


Many first-time buyers combine these schemes with personal savings to meet deposit requirements faster.​


9. Impact of Deposit Size on Real Estate Investment UK


The size of your deposit directly influences your buying power in the UK property market. In real estate investment UK, a higher deposit means better mortgage terms, lower monthly payments, and more potential for positive cash flow.


For first-time buyers looking to build a property portfolio or invest in existing builds, starting with a solid deposit can improve your long-term returns and buying confidence.


10. Tips for Saving Your Deposit Faster


  • Set up a dedicated savings account like a Lifetime ISA.

  • Create a strict monthly budget and automate deposits.

  • Consider government schemes early for discounts.

  • Seek advice from the bestfrom the best property investment companies UK who understand first-time buyer needs.


11. Real Stories: How First-Time Buyers Made It Work in 2025


Cameron and Georgia, both aged 26, used Lifetime ISAs and personal savings to buy a £320,000 property last year. Despite inflation challenges, they saved with determination and government bonuses, ultimately depositing £27,740 towards their home. Their experience shows that with discipline and smart schemes, first-time buyers succeed in today's market.​


12. Key Takeaways


  • Most lenders require a minimum of 5% deposit in UK 2025, but 10% or more is preferable.

  • Government schemes like the First Homes and Deposit Unlock Scheme ease deposit requirements.

  • New build properties have specific schemes to attract first-time buyers with low deposits.

  • Larger deposits secure better mortgage deals, helping first-time buyers and investors.

  • Saving consistently and seeking advice from the bestfrom the best property investment companies UK can speed up deposit collection.


8. Lifetime ISA (LISA)


You can save up to £4,000 per year with a 25% government bonus towards your home deposit.


Many first-time buyers combine these schemes with personal savings to meet deposit requirements faster.​


12. FAQs About First-Time Buyer Deposits UK 2025


Q: Can first-time buyers get a mortgage with less than a 5% deposit?

A: Very few lenders offer mortgages with less than a 5% deposit. Some schemes or guarantors might help but the criteria are strict.


Q: How do government schemes help with deposits for first-time buyers?

A: Schemes provide discounts on property prices or allow buying shares, reducing upfront cash.


Q: Are the deposits different for new-build homes?

A: Yes, newly built builds often require similar or even higher deposits, but schemes like Deposit Unlock allow buying with only 5%.


13. Conclusion


Understanding how much deposit first-time buyers need in the UK in 2025 is crucial for making smart property decisions. The minimum usually starts at 5%, with options and schemes to reduce this burden. Whether you aim for UK property investment or simply want to own your first home, planning your deposit is key. Partnering with the best with the best property investment companies UK and leveraging government programs can make your entry into the market smoother and more affordable.


Ready to start your property journey? Begin saving for your deposit today and exploring the support options available to you. Your future home or investment awaits!

 
 
 
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