How much deposit do I need for a UK mortgage?

Minimum is usually 5%, but 10-20% gets you better rates. A 25% deposit gets the best rates. First-time buyers may qualify for 95% mortgages with government backing.

How much can I borrow for a mortgage in the UK?

Typically 4-4.5x your annual income. A £50,000 salary could borrow £200,000-£225,000. Higher earners and those with large deposits may get higher multiples.

UK Mortgage Guide 2026: How to Get Approved and Find the Best Rate

Home Buying: Follow the full process step-by-step with our UK Home Buying Guide.

UK mortgages let you borrow 4-4.5x your income with deposits from 5%. Here’s how to find the best deal and get approved.

How Much Can You Borrow?

Income Multiple

Deposit	Typical Multiple
5%	4x income
10%	4.25x income
15%	4.5x income
20%+	Up to 5x income

Borrowing Examples

Salary	4x Multiple	4.5x Multiple
£30,000	£120,000	£135,000
£40,000	£160,000	£180,000
£50,000	£200,000	£225,000
£60,000	£240,000	£270,000
£80,000	£320,000	£360,000

Joint income counts if buying together.

Affordability Checks

Lenders also check:

Monthly outgoings
Credit commitments
Childcare costs
Essential spending
Stress test at higher rates

Deposit Requirements

Loan-to-Value (LTV) vs Rate

LTV	Deposit	Rate Impact
95%	5%	Highest rates
90%	10%	Better rates
85%	15%	Good rates
80%	20%	Much better
75%	25%	Best rates
60%	40%	Premium rates

Deposit Examples

Property Price	5%	10%	20%
£200,000	£10,000	£20,000	£40,000
£300,000	£15,000	£30,000	£60,000
£400,000	£20,000	£40,000	£80,000
£500,000	£25,000	£50,000	£100,000

Mortgage Types

Fixed Rate

Term	Feature
2-year fixed	Lower rates, flexibility
5-year fixed	Stability, slightly higher
10-year fixed	Long-term security

Rate is locked for the fixed period.

Variable Rate

Type	How It Works
Standard Variable Rate (SVR)	Lender can change anytime
Tracker	Follows Bank of England rate
Discount	% off SVR for set period

Interest-Only vs Repayment

Type	Monthly Payment	End Result
Repayment	Higher	Own home outright
Interest-only	Lower	Still owe full amount

Interest-only requires a repayment plan.

Current Mortgage Rates (2026)

LTV	2-Year Fixed	5-Year Fixed
60%	~4.00%	~4.10%
75%	~4.20%	~4.30%
85%	~4.50%	~4.60%
90%	~4.80%	~4.90%
95%	~5.20%	~5.30%

Rates change frequently — check current deals.

Monthly Payment Examples

£250,000 mortgage, 25-year term:

Rate	Monthly Payment
4.0%	£1,319
4.5%	£1,390
5.0%	£1,461
5.5%	£1,535
6.0%	£1,610

Mortgage Fees

Fee	Typical Amount
Arrangement fee	£0-£2,000
Booking fee	£0-£250
Valuation fee	£0-£500
Legal fees	£1,000-£1,500
Stamp duty	Varies

Some mortgages have “fee-free” but higher rates.

Getting Approved

What Lenders Check

Factor	What They Look At
Income	Salary, bonus, overtime
Employment	Stability, contract type
Credit history	Missed payments, defaults
Existing debt	Loans, credit cards
Spending	Bank statements (3-6 months)
Deposit source	Must be legitimate

Improve Approval Chances

Action	Impact
Check credit report	Fix errors
Pay down debt	Lower commitments
Stay in job	Employment stability
Save regularly	Shows financial discipline
Reduce discretionary spending	Before bank statement period

First-Time Buyer Options

Lifetime ISA

Feature	Details
Save up to	£4,000/year
Government bonus	25% (£1,000/year)
Property limit	£450,000
Must be first home	Yes

Shared Ownership

Feature	Details
Buy	25-75% of property
Pay rent on rest	To housing association
Can ‘staircase’	Buy more over time
Who qualifies	Income <£80K (£90K London)

Help to Buy (Legacy)

Most schemes closed, but equity loan help may still apply if bought before closure.

Mortgage Process Timeline

Stage	Timeframe
Agreement in Principle	1-2 days
Property search	Varies
Offer accepted	—
Full application	1-2 weeks
Valuation	1-2 weeks
Legal work	4-8 weeks
Exchange	—
Completion	1-4 weeks after exchange
Total	3-6 months

Remortgaging

When to Remortgage

Trigger	Action
Fixed rate ending	Look 3-6 months before
SVR too high	Switch to save
Significant equity gain	Access better LTV
Need to borrow more	Remortgage with extra

Remortgage Costs

Cost	Amount
Early repayment charge	1-5% of outstanding
New arrangement fee	£0-£2,000
Legal fees	£200-£500 (often free)
Valuation	Often free

Overpaying Your Mortgage

Overpayment	Typical Allowance
Without penalty	10% of balance/year
Impact	Reduces term and interest

Example: £250,000 mortgage at 4.5%, 25 years:

Normal: £1,390/month, £166,900 interest
£100 extra/month: Pay off 4 years early, save £29,000

Mortgage Brokers vs Direct

Option	Pros	Cons
Broker	Access to many lenders, advice	May charge fee
Direct	Exclusive deals	Miss other options
Comparison sites	Quick overview	Not comprehensive

Many borrowers use whole-of-market brokers.

Bottom Line

Step	Action
1	Check credit score
2	Save biggest deposit possible
3	Get Agreement in Principle
4	Research current rates
5	Consider broker
6	Compare total cost (rate + fees)

Key tips:

Bigger deposit = better rate
Fix for stability in uncertain times
4-4.5x income is typical max
Shop around — rates vary significantly
Remortgage before falling to SVR
Overpay if you can (up to 10% penalty-free)

Sources

Office for National Statistics. “UK Statistical Data and Analysis.” ons.gov.uk
Bank of England. “Monetary Policy and Interest Rates.” bankofengland.co.uk/monetary-policy

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy