A mortgage deposit is the amount you contribute toward a property purchase before a lender provides the rest. In the UK, deposits usually start from 5%, but the amount you need, where it can come from, and how it must be proven depends on your situation, the lender, and the property type. This guide explains mortgage deposits in plain English, including gifted deposits, proof of funds, common mistakes, and how deposits affect mortgage rates.
Jan 12, 2026
If you’re buying a home, the deposit is usually the first thing you worry about.
How much do I need?
Where can it come from?
Do lenders check it?
What counts and what doesn’t?
These are some of the most searched mortgage questions in the UK, and they’re also some of the most misunderstood.
This guide explains exactly how mortgage deposits work, without jargon, and without assumptions.
A mortgage deposit is the amount of money you put toward buying a property before taking out a mortgage.
The mortgage lender then provides the remaining amount.
For example:
Your deposit reduces the lender’s risk, which is why lenders require one in most cases.
“Most deposit problems aren’t about how much money someone has. They come from not understanding where lenders allow that money to come from and how it needs to be evidenced.” - Will Sharman
In the UK, most residential mortgages require a minimum deposit of 5% of the property price.
However, the amount you need can vary depending on:
Typical deposit ranges:
A larger deposit usually means lower interest rates, but it is not the only factor lenders consider.
No. The deposit is not included in your mortgage.
It must be provided by you (or an approved source) and is paid alongside the mortgage funds when the property completes.
Mortgage lenders are strict about source of funds. Your deposit must come from an acceptable, traceable source.
Common accepted sources include:
Money saved over time in a bank or building society account.
Money gifted by a close family member, usually a parent or grandparent.
Lenders require a signed gifted deposit declaration confirming:
Equity released from selling a home.
Funds received through probate, with evidence.
Accepted by some lenders, provided it is documented and consistent.
Most lenders will not accept:
Using borrowed funds without declaring them is a serious issue and can lead to mortgage refusal.
Proof of deposit is evidence showing:
This usually includes:
Lenders and solicitors are legally required to check this under anti-money laundering regulations.
Proof of deposit is usually required:
Even if you’re not paying the deposit until completion, you must be able to prove you have it available.
First-time buyers often benefit from:
However, deposit rules around proof and source of funds still apply.
Deposits directly affect your loan-to-value (LTV).
Lower LTV generally means:
For example:
These are issues we see regularly:
Most deposit problems are avoidable with proper planning.
At Mortgage Brokers Near Me, deposit issues are one of the most common causes of delayed or failed applications we see.
We help by:
This prevents last-minute surprises and unnecessary stress.
A mortgage deposit isn’t just about how much money you have.
It’s about where it comes from, how it’s evidenced, and how it fits lender criteria.
Understanding this early can save weeks, sometimes months, in the buying process.
“We regularly see buyers panic over deposits when, in reality, a quick review of their funds and paperwork would have avoided weeks of delays. Getting this right early makes the whole mortgage process smoother.”
If you’re buying a property and want to confirm your deposit amount, source, or proof requirements, a quick review can save serious time later.
Speak to a mortgage adviser at Mortgage Brokers Near Me for clear, guidance based on your situation.
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Mortgage Brokers Near Me LTD is an Appointed Representative of The Right Mortgage LTD which is authorised and regulated by the Financial Conduct Authority. The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. The Financial Conduct Authority does not regulate Will Writing and some forms of Trusts and Buy to Lets. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
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