In short
Your deposit is the part of the price you pay yourself. The rest is the mortgage. Loan-to-value (LTV) expresses that mortgage as a percentage of the property’s value: it is the loan divided by the value, times 100. The median first-time buyer LTV in the UK was 85.6% in 2025 (ONS), meaning a deposit of roughly 14% to 15%. A government-backed scheme permanently supports lenders’ 91-95% LTV mortgages, so a deposit of about 5% can be enough for eligible buyers anywhere in the UK.
How LTV is worked out
The formula is simple.
- LTV (%) = mortgage ÷ property value × 100
- Deposit (%) = 100 − LTV
The value used is normally the lender’s own valuation, which can be lower than the price you agreed. If the valuation is lower, the lender works from the lower figure and you may need a larger deposit. Under FCA rules the lender must not base its affordability assessment on equity in the property or on expected price rises (MCOB 11.6.5R), so a low deposit does not by itself make the loan “affordable”: your income does.
What buyers actually put down
The Office for National Statistics reports the median first-time buyer LTV as 85.0% in 2024 and 85.6% in 2025, the highest since before the 2008 financial crisis. The 2025 figures differ by nation and region:
| Area | Median first-time buyer LTV, 2025 |
|---|---|
| UK | 85.6% |
| Scotland | 89.7% |
| Wales | 88.9% |
| London | 80.2% |
| North East of England | 89.8% |
The ONS bulletin read for this guide does not give a Northern Ireland LTV figure. Buyers in Scotland and Wales therefore tend to borrow a larger share of the price than the UK median. These are medians of what people did, not minimums required by lenders.
Why LTV matters
LTV is one of the main inputs lenders use to price and approve a mortgage. The sources read for this guide do not publish lender pricing bands, so the exact rate difference between, for example, 90% and 75% LTV is something to check with each lender or an adviser. What is certain is that:
- a smaller deposit means a larger loan, and therefore higher monthly repayments for the same term;
- your loan is also tested against your income under the affordability rules;
- a very high LTV leaves less margin if prices fall.
The Mortgage Guarantee Scheme
GOV.UK states that the 2025 Mortgage Guarantee Scheme supports “91-95% loan-to-value mortgages”, allowing buyers to purchase with deposits of about 5%. It is described as permanently available from July 2025, for eligible first-time buyers and home movers in the UK. The page does not state a maximum property price. The lender decides whether to offer such a product, so availability depends on the lender.
Other ways to build a deposit
- Lifetime ISA: the 25% government bonus on up to £4,000 a year can go towards a first home costing £450,000 or less. See the Lifetime ISA guide.
- Shared ownership (England): you need a deposit, usually 5% to 10% of the share you are buying, not of the full price. See shared ownership.
- Wales: gov.wales lists Help to Buy - Wales, a shared equity loan for first-time buyers and home movers with a 5% deposit on homes up to £300,000 (from 1 April 2023), and Homebuy - Wales, an equity loan of 30% to 50%. The page does not say whether each is currently open for applications, so check the Welsh Government before relying on them.
- Scotland and Northern Ireland: schemes there are run by the devolved governments. I found no current figures for them in the sources read, so ask the relevant government body or a mortgage adviser.
What it costs
The deposit is only part of the cash you need. Add the purchase tax for your nation (see the stamp duty calculator), legal fees, a survey and moving costs. The calculator on this site shows the tax for England, Scotland, Wales and Northern Ireland.
Which professional to consult
A mortgage adviser can tell you which lenders offer products at your LTV and whether you meet the conditions of the Mortgage Guarantee Scheme; see the mortgage adviser page. A conveyancer handles the transfer of your deposit funds and may ask for proof of where the money comes from; see the conveyancer page.
Frequently asked questions
What is a 95% LTV mortgage?
It is a loan of 95% of the property value, with a deposit of 5%. Under the Mortgage Guarantee Scheme, lenders can offer 91-95% LTV mortgages to eligible buyers.
Is there a minimum deposit set by law?
The sources read for this guide state no legal minimum. Each lender sets its own maximum LTV, and your income is tested separately.
Does a higher valuation help me?
Lenders use their own valuation. A valuation below the agreed price reduces the loan available at a given LTV, which can raise the cash you need.
Is the LTV the same in all four nations?
The definition is the same everywhere. Buyers’ typical LTV differs: the ONS gives 89.7% for Scotland and 88.9% for Wales against a UK median of 85.6%.
Can a gift be part of my deposit?
Lenders and conveyancers have their own rules on gifted deposits. I found no official figure to quote, so ask your lender before relying on a gift.
More guides on financing
Sources
- Mortgage statistics, UK 2025 (Office for National Statistics) (consulted 14 October 2026)
- 2025 Mortgage Guarantee Scheme (GOV.UK) (consulted 14 October 2026)
- MCOB 11.6 Responsible lending and financing (FCA Handbook) (consulted 14 October 2026)
- Shared ownership scheme: how it works (GOV.UK) (consulted 14 October 2026)
- Lifetime ISA: withdrawing money (GOV.UK) (consulted 14 October 2026)
- Help to buy a home schemes (gov.wales) (consulted 14 October 2026)