Finance · 4 min read

How Much Deposit for a £200,000 House in the UK?

On a £200,000 house in the UK, the minimum deposit is usually £10,000 (5%), but saving £20,000 (10%) or more unlocks noticeably better mortgage rates.

Deposit amounts at each level

• 5% deposit: £10,000 — loan needed: £190,000
• 10% deposit: £20,000 — loan needed: £180,000
• 15% deposit: £30,000 — loan needed: £170,000
• 20% deposit: £40,000 — loan needed: £160,000

Model the exact monthly payment for each scenario with our mortgage calculator.

Why the jump from 5% to 10% matters most

Lenders price risk in bands, and the single biggest rate improvement typically comes from crossing the 95% to 90% loan-to-value (LTV) line — in other words, going from a 5% to a 10% deposit. On a £200,000 house, that extra £10,000 saved can be worth a noticeably lower interest rate for the entire mortgage term, often saving far more in interest than the £10,000 itself over 25–30 years.

What a bigger deposit means monthly

A £190,000 loan (5% deposit) carries a meaningfully higher monthly payment than a £160,000 loan (20% deposit) — partly because the loan is smaller, and partly because the interest rate itself improves at lower LTV bands. Run both scenarios through the mortgage calculator to see the exact gap in pounds per month for your chosen rate and term.

First-time buyer help toward a £200k deposit

A Lifetime ISA adds a 25% government bonus on up to £4,000 saved per year — worth up to £1,000 free money annually toward a first home under £450,000, which covers a £200,000 purchase comfortably. Saving £300/month into a Lifetime ISA reaches a £20,000 (10%) deposit in roughly 5 years once the bonus is included, faster than saving alone.

Other costs to budget alongside the deposit

Beyond the deposit itself, budget an extra £2,500–£7,000 for a £200,000 purchase: solicitor fees, survey, mortgage arrangement fees and removals. Many first-time buyers pay little or no stamp duty at this price point, but always check the current Stamp Duty Land Tax thresholds on gov.uk, since they are reviewed periodically and vary by buyer type and region.

Recap

£10,000 (5%) is the practical minimum deposit for a £200,000 house, but £20,000 (10%) typically unlocks a meaningfully better rate. See the full deposit strategy, including gifted deposits and shared ownership, in our UK house deposit guide, and model your own numbers with the mortgage calculator.

Frequently asked questions