Five per cent is the usual starting point. Deposits of 5% are widely available from mainstream lenders, subject to their criteria, and a handful of lenders now offer 100% mortgages to renters with a clean payment record. On the average first-time buyer price in North Kesteven, which covers Sleaford, that 5% works out at £10,200. In Lincoln it is £8,250.
Those are not made-up numbers. They come from the latest official figures, and they are a far more useful starting point than a national average.
Key takeaways
- 5% is the common floor, not the legal one: most high street lenders price down to a 5% deposit. Some borrowers can go lower, including a genuine no deposit option for long-term renters.
- Sleaford area, £204,000: the average price paid by first-time buyers in North Kesteven was £204,000 in June 2026. A 5% deposit is £10,200, 10% is £20,400 and 15% is £30,600.
- Lincoln, £165,000: the average first-time buyer price in Lincoln was £165,000 in June 2026. A 5% deposit is £8,250, 10% is £16,500 and 15% is £24,750.
- Better rates start at 10% and 15%: lenders price in loan-to-value bands, so crossing from 95% to 90% often moves you into a cheaper tier.
- No stamp duty at these prices: first-time buyers pay 0% up to £300,000, so on a typical Sleaford or Lincoln purchase the bill is nil.
- Schemes can shrink the cash you need: the Mortgage Guarantee Scheme, Shared Ownership, First Homes and Forces Help to Buy all work differently, and none of them suits everyone.
At a glance: deposit requirements in the Sleaford area
Based on the £204,000 average first-time buyer price in North Kesteven (ONS, June 2026).
| Deposit size | Loan-to-value | Deposit on £204,000 | Mortgage needed | Best suited to |
|---|---|---|---|---|
| 0% | 100% | £0 | £204,000 | Renters with 12 months of on-time rent, meeting tighter lender rules |
| 5% | 95% | £10,200 | £193,800 | Buyers with limited savings and a clean credit file |
| 10% | 90% | £20,400 | £183,600 | Buyers a year or two into a savings plan |
| 15% | 85% | £30,600 | £173,400 | Buyers with a family gift or a longer savings run |
| 20%+ | 80% or less | £40,800+ | £163,200 or less | Buyers using inheritance or several years of saving |
| Shared Ownership | On your share only | 5% to 10% of the share bought | Based on the share | Buyers on lower incomes wanting a first step |
How much deposit do I need for my first house?
Five per cent of the purchase price is the realistic starting point for most people, and it is what the government’s permanent Mortgage Guarantee Scheme is built around. Since July 2025 that scheme has been a standing part of the market rather than a temporary prop, and it backs lenders offering mortgages between 91% and 95% loan-to-value.
Deposit size is normally described as a loan-to-value ratio, or LTV. Put £10,200 down on a £204,000 house and you are borrowing £193,800, which is 95% LTV.
Five per cent is not an absolute minimum, though. A small number of lenders will consider 100% borrowing for renters who can evidence their payment history, and family-backed products can cut the cash you personally need. What 5% really represents is the point at which most mainstream lenders will look at you without extra conditions attached.
What does a 5% deposit look like in Sleaford and Lincoln?
This is where county-wide averages stop being much use. The two areas most Spolton clients buy in sit a long way apart on price.
North Kesteven, which includes Sleaford, had an average first-time buyer price of £204,000 in June 2026.
- 5% deposit: £10,200 (0.05 x £204,000)
- 10% deposit: £20,400
- 15% deposit: £30,600
Lincoln had an average first-time buyer price of £165,000 in the same month.
- 5% deposit: £8,250 (0.05 x £165,000)
- 10% deposit: £16,500
- 15% deposit: £24,750
Both figures are provisional and come from the Office for National Statistics local housing price data for June 2026, published as part of the UK House Price Index.
The gap matters. A Lincoln buyer aiming for a 10% deposit needs £16,500, while a Sleaford buyer aiming for the same percentage needs nearly £4,000 more. If your budget is fixed and your job allows either location, that difference can be the thing that moves your purchase forward by a year. Our first-time buyer mortgages page walks through how lenders view both.
Why lenders care about your deposit size
A bigger deposit means less risk for the lender if prices fall or repayments become a struggle. That is why the rate usually improves as your deposit grows.
Lenders price in bands, typically at 95%, 90%, 85% and 80% LTV, with rates dropping at each step. Even a small jump can move you across a threshold. Saving another £2,040 on a £204,000 purchase takes you from 9% to 10% deposit, and that single percentage point can move you into a cheaper band for the whole term of the deal.
Smaller deposits also bring closer scrutiny of income, credit history and existing debts. Self-employed buyers and those with thin credit files sometimes find 95% lending harder to arrange, even on perfectly stable income.
Compare deposit percentages: 5% vs 10% vs 15%
The table below uses the £204,000 North Kesteven figure. Rates are shown as tiers rather than numbers, because pricing changes weekly and any figure printed here would be out of date by the time you read it.
| Deposit | Mortgage amount | Rate tier | Effect on monthly cost |
|---|---|---|---|
| 5% (£10,200) | £193,800 | Highest tier | Highest of the four, on the largest loan |
| 10% (£20,400) | £183,600 | Mid tier | Lower rate on a loan £10,200 smaller |
| 15% (£30,600) | £173,400 | Lower tier | Lower again, on a smaller loan still |
| 20% (£40,800) | £163,200 | Best available | Lowest monthly cost of the four |
The saving comes from two directions at once: a smaller loan and a cheaper rate. Our mortgage deposit calculator lets you put your own target price in and see the four figures side by side.
Can I buy my first home with no deposit?
Sometimes, yes. Options are limited but real.
Skipton Building Society’s Track Record mortgage lets eligible renters borrow up to 100% of the purchase price with no deposit at all. Applicants need to show 12 months of rent paid on time within the last 18 months, be at least 21, and have kept up with all credit payments over the last six months. The maximum loan is £600,000 and the product does not cover flats. Full criteria sit on Skipton’s own page.
Two other routes can remove the deposit without a 100% product:
- Guarantor mortgages, where a close relative agrees to cover payments if you cannot.
- Family springboard deals, where a relative places savings, often around 10% of the price, with the lender as security rather than gifting the money outright.
Borrowing 100% has trade-offs worth being straight about. You are borrowing more, so the monthly payment is higher. Rates on no-deposit deals sit above the equivalent 95% product. And because there is no equity buffer, you would be more exposed if local prices dipped in the first few years.
If that sounds like your situation, our no deposit mortgages service page and our 100% mortgage guide go through eligibility in more detail. If you have some savings but not a full 5%, the low deposit mortgages route is usually the better place to start.
Can my parents help with my first house deposit?
Gifted deposits are common and widely accepted. Most lenders will take one, but their rules differ on the detail, and the detail is what trips applications up.
Things lenders typically want to see:
- Who the money came from. Parents and grandparents are almost always fine. Aunts, uncles, friends and employers vary by lender.
- A signed gift letter confirming the money is a gift, not a loan, and that the giver has no stake in the property.
- Proof of the source of funds, usually bank statements showing where the money built up, which is a standard anti-money-laundering check rather than suspicion of anything.
- Whether the giver is on the mortgage. A gift from someone living in the property can change how a lender treats the application.
A gift can also be combined with your own savings. A buyer with £8,000 saved and a £12,400 gift reaches the £20,400 needed for a 10% deposit on a £204,000 Sleaford home, which usually opens up better pricing than 5%.
We give gifted deposit advice regularly and can tell you early which lenders will accept your particular arrangement, before you get attached to a product that will not work.
Schemes that reduce the deposit you need
Mortgage Guarantee Scheme
Now a permanent scheme, running since July 2025. The government guarantees part of the lender’s risk on mortgages at 91% to 95% LTV, which keeps 5% deposit products on the shelf even when lenders get cautious. It is open to first-time buyers and home movers across the UK. You do not apply to the scheme yourself; you apply for a mortgage from a lender that takes part.
Shared Ownership
You buy a share of a property and pay rent to the landlord on the rest. Shares usually run from 25% to 75%, and some homes allow a 10% share. Your deposit is normally 5% to 10% of the share you are buying, not the full property value.
On a £204,000 home, buying a 40% share means an £81,600 share. A 5% deposit on that share is £4,080, and 10% is £8,160. That is the appeal, though remember you are paying rent on the remaining 60% plus any service charge, so the monthly cost is not automatically lower. Our shared ownership mortgages page and our shared ownership guide cover how the sums stack up.
First Homes
Qualifying new-build properties are sold to eligible first-time buyers at 30% to 50% below market value. Household income is capped at £80,000 outside London, all buyers must be first-time buyers, and you need a mortgage covering at least half the discounted price.
The discount applies to the price you pay, so your deposit percentage is calculated on the lower figure. A £204,000 home with a 30% discount comes down to £142,800, and a 5% deposit on that is £7,140.
The catch in Lincolnshire is supply. First Homes only exist where a developer has built them under a local planning agreement, so availability depends on qualifying properties coming to market in your area. It is worth checking with the local council rather than assuming there is stock nearby.
Armed Forces Help to Buy
Serving personnel can borrow up to 50% of annual salary, capped at £25,000, interest free. It has been an enduring policy since January 2023 rather than a temporary offer, and the money can go towards a deposit as well as costs like solicitor’s and estate agent’s fees.
With RAF Cranwell, RAF Waddington, RAF Digby and RAF Coningsby all within a short drive of Sleaford, this comes up often locally. Our Armed Forces scheme page explains how lenders treat the loan alongside a mortgage application.
Build a realistic savings plan
A Lifetime ISA is worth a look if you are under 40 and buying in Lincolnshire, because local prices sit comfortably inside the scheme’s limits. The gov.uk Lifetime ISA rules that matter most:
- You can pay in up to £4,000 a year, which counts towards your overall ISA allowance.
- The government adds a 25% bonus, so a maximum of £1,000 a year.
- The property must cost £450,000 or less. Every average figure in this article is well under that.
- You must buy at least 12 months after your first payment into the account.
- Withdrawing for anything other than a qualifying first home before age 60 carries a 25% charge, which can leave you with less than you put in.
Put the maximum in and you save £5,000 a year including the bonus. Two full years of that is £10,000, roughly a 5% deposit on a £204,000 Sleaford home. Three years is £15,000, close to the £16,500 a 10% deposit needs in Lincoln.
The 12-month rule is the one people get caught by. If you think a purchase might happen at any point in the next few years, opening the account early and paying in a small amount starts the clock.
Beyond the LISA, a standing order into a separate account on payday works better than saving whatever is left at month end. Our deposit saving calculator shows how long a given monthly amount takes to reach your target.
Budget beyond the deposit
Saving the deposit figure exactly, and nothing more, is a frequent trip-up. Costs on top vary a lot depending on the property, the survey you choose and how far you are moving, so treat any single range you see quoted online with caution. What is worth budgeting for:
- Conveyancing and legal fees, plus search fees paid to the council.
- A survey, where a basic condition report and a full building survey are very different prices.
- Removals, which can range from a hired van to a full service.
- Furnishing an empty home, which almost always costs more than people expect.
Stamp duty is one cost most Lincolnshire first-time buyers can set aside. First-time buyer relief means 0% up to £300,000, then 5% on the portion from £300,001 to £500,000, with no relief at all above £500,000. At £204,000 in North Kesteven or £165,000 in Lincoln, both sit under the £300,000 threshold, so the stamp duty bill is nil. You can check your own figure with our stamp duty calculator, and add everything together with the total buying cost tool.
Can a mortgage broker help me with a smaller deposit?
Yes. A whole-of-market broker checks lenders beyond your own bank, and criteria at 95% LTV vary more than people expect. One lender’s decline is another’s straightforward case.
Spolton Mortgages charges nothing until your mortgage offer is approved. The fee is typically £299, reduced to £199 for Armed Forces and Blue Light card holders, with no fee on like-for-like remortgage switches. So finding out what your deposit can realistically buy carries no upfront advice fee.
Deposit planning we have already done locally
Deposit planning is not only something we write about. Kelsey, a first-time buyer in her twenties working as a customer adviser, came to us with £20,000 saved against a £160,000 Sleaford property, a 12.5% deposit. Her deposit was not the problem. Getting a lender to agree the borrowing she needed on her income was, and holiday pay made her figures awkward to assess.
Rather than pushing her towards specialist lending, adviser Tom Clifton worked through mainstream lenders whose affordability rules fitted her circumstances, handled the underwriter’s questions about her pay, and the mortgage completed in just over a month at 88% LTV. Her Sleaford first home case study has the full story.
We also speak to plenty of buyers who are nowhere near ready, want to know what deposit they need, and come back a year later when they are. That conversation costs nothing and tends to save time later.
Frequently asked questions
What is the minimum deposit for a first house in the UK?
For most mortgages it is 5% of the property value, which is £10,200 on the £204,000 average first-time buyer price in North Kesteven. A small number of lenders offer 100% mortgages to renters who can evidence 12 months of on-time rent, so 5% is the common floor rather than an absolute one.
Can I buy a house with no deposit?
Some buyers can. Skipton’s Track Record mortgage allows eligible renters to borrow up to 100% with no deposit, and guarantor or family springboard products can remove the cash you personally need. Criteria are tighter than on a standard mortgage and you will be borrowing more, so the monthly payment is higher.
Does a bigger deposit always mean a better rate?
Usually, because lenders price in loan-to-value bands and crossing into a lower band tends to bring cheaper pricing. There are exceptions, particularly with scheme-backed products and some fixed deals, so it is worth comparing rather than assuming.
Do first-time buyers pay stamp duty in Lincolnshire?
On typical local prices, no. First-time buyer relief means no stamp duty up to £300,000, and both the North Kesteven and Lincoln average first-time buyer prices sit well below that. Above £300,000 you pay 5% on the portion up to £500,000.
Can my deposit be a gift from my parents?
Yes, gifted deposits are widely accepted. Lenders will want a signed letter confirming it is a gift rather than a loan, evidence of where the money came from, and their rules on who can give it differ, so it is worth checking before you make an offer.
Working out how much deposit you need for your first house does not have to be guesswork. Start with the deposit calculator to see the figure for your target price, use the savings calculator to work out how long it takes at your monthly rate, then add the extras with the buying cost calculator.
When you want a real answer rather than an estimate, book a consultation with Nick or Kasia. You can also read more Lincolnshire case studies or see all mortgage services we offer, from your first deposit through to protection and remortgaging later on.
Your home may be repossessed if you do not keep up repayments on your mortgage.
