How much deposit do I need for a mortgage? | NatWest Mortgages (2024)

NatWest mortgages are available to over 18s. Your home or property may be repossessed if you do not keep up repayments on your mortgage. The content on this page is guidance only and does not constitute advice.

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When you take out a mortgage to purchase a property, your deposit is the amount of money you provide up front towards the total purchase price of the property.

• Deposit amounts are usually a percentage of the value of a property. So, if you are buying a property for £300,000, with a 10% mortgage deposit, you would need to pay a£30,000deposit.

The information on this page is relevant to purchasing property in England, Northern Ireland or Wales. Please note there are differences when purchasing property in Scotland.

If you are looking for a mortgage and have a small deposit, the minimum deposit required for a NatWest 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 circ*mstances 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 don't currently offer any new mortgages without a deposit.
• It may be possible to get a '100% mortgage' (i.e. a mortgage without deposit) from other mortgage providers. However, you should be aware that a 100% mortgage may be subject to relatively high interest rates, so the total cost of your mortgage could be considerably more expensive.
• You should also consider an increased risk of 'negative equity'. This is whenyour property is worth less than the amount you've borrowed. With a 100% mortgage, even a modest fall in the value of your home could result in negative equity.

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 circ*mstances 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.

Who do I pay my mortgage deposit to?

When purchasing a property,you will appoint a conveyancer. This party, usually a solicitor, is a legal representative who will act on your behalf throughout this process.

Your conveyancer will generally manage the movement of funds to the selling party's legal representative, so money for a deposit would normally be provided to your conveyancer.

If you are transferring substantial sums of money to a conveyancer, be aware of scams. Be sceptical with any emails or other messages asking you to transfer money, even if they appear to be from your conveyancer. If you have any suspicion at all, or feel you are being pressured to transfer any funds, contact your conveyancer directly over the phone, using a number you are familiar with or from their website, and ask them to verbally verify the details.

Can my parents contribute towards my deposit?

Yes, it's normally fine for parents or other family members to gift you money for all, or some of your mortgage deposit. This is often referred to as a 'gifted deposit'.

In this scenario,a mortgage lender will expect you to prove the money is a gift, without expectation of repayment.

This usually takes the form of a gifted deposit letter, signed by the gifting party(ies).Your conveyancer will help ensure the letter is sufficient as a legal statement for mortgage lenders to consider during a mortgage application.

Learn more about NatWest's gifted deposit policy