If you're thinking about buying a home in 2026, one of the first questions you'll probably ask is: "How much deposit do I actually need?"

The good news is that you don't necessarily need a 20% or 25% deposit to get onto the property ladder. There are mortgage options available with smaller deposits, although the amount you put down can have a significant impact on your mortgage rate, monthly payments and the amount you can borrow.

Whether you're a first-time buyer, moving up the ladder or looking to purchase in areas such as Woodford Green, South Woodford, Chingford or Bethnal Green, understanding your deposit options is an important first step.

For many buyers, 10% is a realistic target.

A 10% deposit means you are borrowing 90% of the property's value – known as a 90% loan-to-value (LTV) mortgage.

For example:

Property price 10% deposit Mortgage

£300,000 £30,000 £270,000

£400,000 £40,000 £360,000

£500,000 £50,000 £450,000

£600,000 £60,000 £540,000

However, it's important to remember that you'll also need money available for other costs associated with buying a property.

Yes. 5% deposits are available on some mortgages, meaning you could potentially borrow 95% of the property's value.

For example, a £400,000 property with a 5% deposit would require £20,000, with a £380,000 mortgage.

This can make a significant difference for buyers who have a good income but haven't yet managed to build a large deposit.

The trade-off is that higher-LTV mortgages can come with higher interest rates and larger monthly repayments, so it's important to look at the overall cost rather than simply focusing on the size of the deposit.

Not necessarily.

A larger deposit can give you access to lower-LTV mortgage products and potentially better interest rates. It also means borrowing less, which can reduce your monthly repayments.

But there can be a point where putting every penny of your savings into the deposit isn't necessarily the best option.

You should also consider keeping money aside for:

Having a slightly smaller deposit while retaining a financial cushion can sometimes be more sensible than putting all your savings into the property.

First-time buyers may have additional options and support available, depending on their circumstances.

However, the most important thing is to work out what you can comfortably afford, rather than simply asking how much a lender is prepared to offer.

Your deposit is only one part of the equation. Your income, existing commitments, credit history, mortgage rate and the property's value will all influence what you can borrow.

One mistake we often see is buyers calculating their deposit but forgetting about the other costs involved in moving.

For example, if you're saving £30,000 for a deposit, you shouldn't necessarily assume that the entire £30,000 is available to put towards the property.

You'll need to budget for the costs surrounding the purchase as well.

And if you're buying in London, it's particularly important to understand the current Stamp Duty rules and whether you qualify for any first-time buyer relief.

The deposit you need will ultimately depend on the property you're buying.

A 5% deposit on a £400,000 property is very different from a 5% deposit on an £800,000 property.

That's why it's useful to establish your realistic purchasing budget before you start viewing properties.

Knowing your budget allows you to concentrate on the properties you can genuinely afford and puts you in a much stronger position when you find the right home.

It can also make you a more attractive buyer to sellers, particularly when you're able to demonstrate that your mortgage arrangements and deposit are already in place.

When planning your purchase, don't simply ask:

Instead, ask:

That figure will give you a much clearer idea of what you should be looking for.

And remember, mortgage products and lending criteria change regularly, so it's always worth speaking to a qualified mortgage adviser for advice based on your individual circumstances.

If you're considering making a move, we'd be happy to help you understand what's currently available in the local market.

Whether you're a first-time buyer, upsizing, downsizing or moving into the area, our local teams can give you an insight into current property values, available homes and the types of properties your budget could potentially buy.