On this page...
Overlay
Online mortgages are provided by NatWest which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Royal Bank of Scotland may receive a fee based on a percentage of any mortgage entered into for this referral. NatWest and Royal Bank of Scotland mortgages are available to over 18s. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
How much deposit do you need for a mortgage?
If you are looking for a mortgage and have a small deposit, the minimum deposit required for a Royal Bank mortgage is 5% of the purchase price of the property (these are sometimes referred to as 95% mortgages). Exclusions and eligibility criteria apply.
This means, if you were buying a property for £300,000, you would need a mortgage deposit of £15,000.
Depending on your circumstances and the property you are buying, you may need a higher deposit (e.g. 10% mortgage deposit, or 90% mortgage).
You could get an Agreement in Principle for a mortgage in under 10 minutes without any obligation or impact to your credit score.
We're offering 91-95% LTV mortgages
With our range of 95% mortgages, you could buy your new home with just a 5% deposit.
How much deposit should I save?
It may be tempting to opt for a low deposit mortgage, to get on the property ladder as soon as possible, or to provide you with money to spend elsewhere. However, you should take into consideration the advantages of saving a larger deposit.
A larger deposit can result in various advantages...
-
01
The larger your deposit as a percentage of the property's value, the lower your mortgage LTV (loan-to-value).
A lower LTV could increase the number of mortgage products available to you and may result in you being offered a lower interest rate on your mortgage.
-
02
As you would be borrowing less with a bigger deposit, you may be able to reduce the length of your mortgage term and pay off your mortgage sooner (depending on your ability to cover the monthly payments).
-
03
With a larger deposit, you could save on the total cost of your mortgage if a more favourable interest rate or shorter mortgage term is available.
You can use our mortgage calculator to get a quick indication of how much a mortgage could cost with different deposit amounts.
Set yourself a savings goal
Setting yourself a goal is a great strategy that can make saving feel a little easier. Royal Bank instant access savings account holders can set themselves a savings goal using our mobile app. Savings account eligibility criteria apply.
App available to customers aged 11+ with compatible iOS and Android devices and a UK or international mobile number in specific countries.
More tips on saving for your deposit
Saving for a deposit can be difficult. There's no silver-bullet, but there are things you can do to make the process easier.
Will I need another deposit when moving house?
A deposit is usually paid to the seller when contracts are exchanged, which your conveyancer will transfer to the seller’s conveyancer on the exchange date. This is usually around 10% of the total purchase price of the property but there may be scope to negotiate this.
It's best to discuss your circumstances with your conveyancer, who will be able to advise the sources of funds that you may be able to consider to cover your exchange deposit.