What Is the Minimum Deposit for a Mortgage in Cardiff & South Wales?

What Is the Minimum Mortgage Deposit?

In the UK, the minimum mortgage deposit is typically 5% of the property’s value. This is known as a 95% loan-to-value (LTV) mortgage.

For example:

• Property price: £250,000
• 5% deposit: £12,500
• Mortgage needed: £237,500

While 5% is the minimum, it’s rarely the most cost-effective option long term.

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How Much Deposit Should You Aim For?

Most mortgage advisers recommend aiming for a 15%–20% deposit if possible.

A larger deposit puts you in a much stronger position with lenders and can significantly reduce how much you pay over the lifetime of your mortgage.

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Why a Bigger Deposit Makes a Big Difference

1. Higher Chance of Mortgage Approval

Lenders see you as lower risk when you put down a larger deposit, making approval more likely.

2. Lower Monthly Repayments

Borrowing less means smaller monthly payments and more flexibility in your mortgage term.

3. Better Interest Rates

Mortgage deals are directly linked to your LTV. The lower your LTV, the better the interest rates available.

4. Reduced Risk of Negative Equity

With a small deposit, even a slight drop in house prices could leave you owing more than the property is worth. A larger deposit protects you from this risk.

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Are There Any Schemes to Help?

Some buyers may be eligible for government or lender schemes designed to help those with smaller deposits, but these vary over time. Speaking to a mortgage adviser will help you understand what’s currently available.

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Key Takeaway

Yes, you can buy a home with a 5% deposit.
But if you can stretch to 15–20%, you’ll unlock better rates, lower payments, and a safer financial position.

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Need Property Advice in Cardiff?

At Fortis, we help buyers across Cardiff and South Wales prepare for their move with practical, honest guidance. Whether you’re saving for a deposit or ready to start viewing homes, our team is here to help.

Call 02920 561111 or email hello@fortis.homes for friendly advice.

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FAQs About Mortgage Deposits

What is the minimum deposit for a mortgage?
Usually 5% of the property value.

Is 5% deposit a good idea?
It’s possible, but you’ll pay higher interest rates compared to larger deposits.

What deposit gets the best mortgage rates?
Typically 15%–25% gives access to the most competitive deals.

Can I buy with no deposit?
This is very rare and usually only possible with specialist guarantor mortgages.