Mortgage Guides
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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What is a mortgage deposit? Open in new window
How much deposit do I need? Open in new window
How much should I save? Open in new window
Can I get a no deposit mortgage? Open in new window
Deposit when moving home Open in new window
Other mortgage deposit FAQs Open in new window
Get an Agreement in Principle Open in new window
What is a mortgage deposit?
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.
Information Message
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.
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 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.
Information Message
NatWest are now offering 91-95% LTV mortgages
With our range of 95% mortgages, you could buy your new home with just a 5% deposit with NatWest.
Find out about 95% mortgages
Exclusions & eligibility criteria apply.
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...
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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.
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As you would be borrowing less with a bigger deposit, you may be able toreduce the length of your mortgage termand pay off your mortgage sooner (depending on your ability to cover the monthly payments).
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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 ourmortgage calculatorto 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. NatWest 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.
Learn more about our savings goal tool Open in new window
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.
Read our deposit saving tips Open in new window
Can I get a mortgage with a 0% deposit?
- 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.
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 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.
Other common mortgage deposit questions
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
More helpful mortgage deposit questions
When you apply for a mortgage, you will have to provide a potential lender with information about the source of your deposit, which they will verify.
Although it is possible that a lender could accept a loan as a source of mortgage deposit, it is highly likely that they won't. If you are borrowing money for a deposit, you would effectively be borrowing 100% of the price of your property (when you include the mortgage loan too). This would be seen as too risky and NatWest would not accept this as a source of deposit.
Yes, you can use the funds you have saved in your Help-to-buy: ISA towards your deposit.
Under the rules, the government bonus funds are only paid upon completion of the sale. For example, if you are purchasing a £100,000 property and have saved £8,000 in a Help-to-buy: ISA, with the government bonus you will have £10,000. This equates to a 10% deposit in total. In this scenario, you would be able to use your £8,000 at the exchange date and use the bonus funds of £2,000 on the completion date.
This means that the bonus funds cannot be used towards the deposit payable on the exchange date. You may be able to negotiate a reduced deposit with the seller at the exchange date, with the remainder to be paid at completion. You should discuss this with your conveyancer.
Please note this does not apply to properties being purchased in Scotland.
Manage my NatWest Help-to-buy: ISA
Your credit rating can impact your ability to get a mortgage and the products that lenders could offer you.
A larger deposit may increase the number of mortgage products available to you but this will be considered together with your circ*mstances.
You can learn more about what credit score you need to get a mortgage.
More mortgage guides and information
Take a look at our handy mortgage guides
How do mortgages work? Open in new window
A guide to buying your first home Open in new window
Home buying costs guide Open in new window
What is a mortgage valuation? Open in new window
What is a house survey? Open in new window
What is Stamp Duty? Open in new window
Other useful information and help
What is an Agreement in Principle? Open in new window
How do I apply for a mortgage? Open in new window
What do I need to apply for a mortgage? Open in new window
Find out about 95% mortgages Open in new window
Help getting a mortgage for the self-employed Open in new window
Mortgage jargon buster Open in new window