How much deposit do you need?

Topics

Your deposit is the portion of the property price you pay yourself, with the rest typically covered by a mortgage. In Scotland, most lenders require a minimum deposit of 5 percent, but aiming higher can open the door to better mortgage rates and greater long-term savings.

What is a deposit and why does it matter?

Your deposit plays a key role in how much you can borrow and the kind of mortgage deals available to you. The bigger your deposit, the lower your loan-to-value ratio (LTV), a figure lenders use to assess how risky the loan is. A lower LTV generally means a lower interest rate and more favourable mortgage terms.

Here’s a general breakdown:

  • Minimum deposit: 5% of the property price (typical for a 95% LTV mortgage)
  • Preferred deposit: 10% or more (helps access a wider range of deals)
  • Best rates: 15–25% deposit (reduces risk for lenders and often unlocks the most competitive interest rates)

It’s worth remembering that even a small increase in your deposit, say, from 5% to 10%, can make a noticeable difference to your monthly payments over the life of your mortgage.

Do First-Time Buyers get any help?

Yes, first-time buyers in Scotland benefit from a few key advantages. For example, Land and Buildings Transaction Tax (LBTT) doesn’t apply to the first £175,000 of a property’s value if you’ve never owned a home before. This can reduce the amount you need to save overall and free up money that could go toward your deposit.

There are also several government-backed schemes and incentives aimed at helping people get onto the property ladder. These are covered in the next section of the guide, but can include shared equity arrangements, savings bonuses through products like the Lifetime ISA, or even developer incentives for new-build homes.

Tips for reaching your deposit goal

Saving for a deposit can take time, but setting realistic goals can help make the process more manageable. Many first-time buyers set up dedicated savings accounts, review their monthly spending, and explore tools or savings schemes designed to make the process more efficient.

If you’re receiving support from family, such as a gifted deposit, this will also need to be clearly documented. Your solicitor and mortgage advisor can guide you through how this is handled, ensuring the process runs smoothly.

Planning ahead

Your deposit will shape the type of property you can afford, the mortgage you qualify for, and the interest rate you’ll pay. Starting early, understanding your target, and using all available support can make a big difference when it comes time to apply for a mortgage.

If you’re unsure where to begin, speak to an ESPC mortgage advisor who can help you work out a realistic deposit goal and explore what options are available based on your circumstances.