What is a mortgage deposit?

A mortgage deposit is the amount of money you pay upfront towards the purchase of a home and the rest is covered by your mortgage.

Deposits can come from various places. For example, your savings, a gift from family, an inheritance, or the sale of your property if you’re moving home.

What is the minimum deposit for a mortgage?

The minimum deposit you need for a Nationwide mortgage is 5% of the property price, which would be a 95% mortgage. Eligibility criteria applies.

The advantages of a larger deposit

The larger your deposit, the smaller your mortgage and monthly payments. It also means a lower Loan to Value (LTV).

What is Loan to Value, or LTV?

LTV is something we might talk about when you’re looking for a mortgage with us. It means the size of your mortgage as a percentage of the property price. So, the larger your deposit, the lower the LTV.

For example:

You’re buying a property that is £200,000 with a £20,000 deposit.

Your deposit covers 10% of the property price.

The other 90% will be your mortgage.

We call this a 90% LTV mortgage.

Work out your LTV with your deposit amount

Use our mortgage rate calculator to get an idea of how much our mortgages could cost you. See how our rates change according to the LTV, depending on the deposit or borrowing amount you enter.

How to save for a mortgage deposit

It can be tricky knowing where to start and what you can afford. These savings tools and tips could help.

Pay off any debts first

If you have debts like credit card bills or personal loans, consider paying those off first. When your debts are paid, you'll have more money available each month to build your savings up quicker. And don’t forget to check that you won’t have to pay any charges or fees for repaying the debt early.

Open a savings account and save regularly

Open a savings account and get into the habit of saving. Work out what you can afford to save and set up a Standing Order so it comes out of your account automatically each month.

When you’re choosing a savings account, you need to think about whether you:

  • need instant access to your money
  • could get a better interest rate by having a limited access or fixed rate account.

We have a range of savings accounts, including instant access and fixed rates that could help.

Use our Banking app to make saving easier

If you have a current account with us, we have useful tools to help you save regularly in our Banking app.

By using our app, you can:

  • Set yourself a savings goal and track your progress
  • Round up your card transactions and save the spare change
  • Transfer money into your savings instantly with Impulse Saver.

Tips on saving for a mortgage deposit

It’s tempting to aim high when you start to save, but it might be too much, and you could find yourself giving up. Set a realistic goal you can stick to by working out what’s affordable each month.

  • Look at your spending
    Could you save more and get to your goal quicker by cutting back on any luxuries? It might mean giving up some of these for a while, like take-aways or regular nights out.

    Also check for any spending on unused memberships, like gym or streaming services and cancel them.

  • Consider switching
    Could you save extra money by switching phone, Wi-Fi or insurance providers? Use price comparison sites to see if you can get a better deal.

Get help with your mortgage deposit from your family

Some people get help from their family. They might be able to give you your deposit as a cash gift, or an amount to contribute towards it.

Whether the cash gift is all of your deposit, or an amount towards some of it, we call this a Gifted Deposit.

If you’re applying for a mortgage with a Gifted Deposit, you’ll need to tell us. We’ll ask you to show us evidence of where it’s coming from, and check you’re not expected to pay it back.

The extra costs of buying a property

There are other costs that are not covered by a mortgage, like Stamp Duty, solicitor fees and a home survey to name a few. If you’re not prepared, it can make a big dent in the money you put towards your deposit.

Our guide on home surveys gives you a good idea of how much they can cost, and you can find the latest information on Stamp Duty and Land Tax on government websites:

For independent information and advice on the cost of moving, MoneyHelper (opens in a new window) can help.


Mortgages are secured on your home. You could lose your home if you do not keep up payments on your mortgage.
Mortgages are subject to underwriting and criteria. Minimum age 18, UK residents only.