If you’re buying your first home in Birmingham, one of the first things you’ll want to understand is how much deposit you’ll need.
The short answer is that most mortgage lenders will accept a minimum of 5%, but many first time buyers in Birmingham are aiming for more.
What you need depends on the property price, your credit history, and what kind of mortgage you’re applying for.
What does a 5% deposit look like?
Let’s say you’re buying a house for £180,000, a 5% deposit on that would be £9,000.
That’s typically the minimum needed to access a 95% loan-to-value mortgage, backed by lenders who support first time buyers in Birmingham.
Some buyers use a Lifetime ISA to boost this figure, or add a gifted deposit on top.
Others choose to keep their deposit at 5% so they can use savings for moving costs, furniture, or renovations.
Are buyers putting down more than 5%?
Quite often, yes. While 5% may get you through the door, a 10% deposit can unlock a wider choice of mortgage deals.
On a £180,000 property, that would mean putting down £18,000 instead of £9,000.
With a larger deposit, you’re borrowing less from the lender, which usually means a lower interest rate and more manageable monthly repayments.
It also makes things smoother if there are any concerns around income or credit history.
We’re seeing more buyers across Birmingham aiming for 10% when they can, especially in areas like Kings Norton, Bearwood, or Moseley, where property values may be a little higher than average.
Does the area affect the deposit needed?
Birmingham’s property market varies by postcode, and your deposit needs to match the value of the house you’re buying.
If you’re looking in more affordable areas like Erdington, a 5% deposit might stretch further.
If you’re buying in places like Solihull or Sutton Coldfield, aiming for 10% or more may give you more flexibility.
We’ll always base our mortgage advice on where you’re looking, not just the numbers in isolation. Knowing the local market helps us match you with the right lender.
Using a Gifted Deposit From Family
Many first time buyers in Birmingham now use gifted deposits to top up what they’ve saved themselves.
Whether it’s enough to bump your deposit from 5% to 10%, or simply help you reach that minimum threshold, most lenders will accept this as long as it’s a true gift and not a loan.
Your mortgage advisor in Birmingham will guide you through what’s needed, including a signed declaration from the person gifting the funds.
Speak to a mortgage advisor – It’s free!
It’s free to speak with a mortgage advisor in Birmimgham. Simply book a date and time that best suits you!
How Your Deposit Affects Your Mortgage
The more you put down, the more choices you’re likely to have.
With a 10% deposit, you might access better interest rates, lower repayments, and more flexible mortgage terms.
That doesn’t mean a 5% deposit isn’t enough; it often is.
What matters most is choosing a mortgage that suits your budget, fits your circumstances, and supports your long-term plans.
Our mortgage advisors in Birmingham will explain your options clearly and show you how each deposit level affects what you can borrow.
Date Last Edited: June 16, 2025
