The deposit you need for a mortgage will usually start from 5% of the property’s purchase price, although the exact amount will depend on the lender and your circumstances.

For example, if you’re buying a property for £200,000, a 5% deposit would be £10,000. If you had a 10% deposit, you would contribute £20,000 and borrow less from the lender.

Most first time buyers in Coventry will need some form of deposit, although there are some 100% mortgage products available through certain lenders. These mortgages typically come with stricter eligibility criteria and are not available to every applicant.

The amount you put down as a deposit can affect the mortgage products available, the amount you need to borrow, and how lenders assess your application.

How Does a Mortgage Deposit Work?

A mortgage deposit is the amount of money you contribute towards the purchase of a property yourself. The lender then provides the remaining amount through a mortgage.

The size of your deposit determines your loan-to-value ratio, often referred to as LTV. This is the percentage of the property’s value that you need to borrow.

For example, if you’re purchasing a property worth £200,000 and have a £20,000 deposit, you would need a mortgage of £180,000. This would give you a 90% loan to value mortgage.

Lenders use loan to value as one way of assessing risk. The larger your deposit, the lower the percentage you need to borrow compared to the property’s value.

Is a 5% Deposit Enough for a Mortgage in Coventry?

A 5% deposit may be enough to secure a mortgage in Coventry, depending on the lender and your overall circumstances.

These mortgages are commonly known as 95% mortgages because you’re borrowing 95% of the property’s value. They can be particularly useful for first time buyers who have found it difficult to save a larger deposit.

While a 5% deposit may meet the minimum requirement, lenders will still assess your income, outgoings, credit history, and affordability before deciding whether to lend.

Some lenders may also have additional requirements depending on the type of property you’re buying, your employment status, or whether you’re using a gifted deposit.

Would a Bigger Deposit Help?

A larger deposit can increase the number of mortgage options available to you because you’re borrowing a smaller percentage of the property’s value.

For example, someone applying with a 10% deposit may have access to more mortgage products than someone applying with a 5% deposit. This can continue to improve as the deposit increases.

That said, saving a larger deposit isn’t always the right option for everyone. Some buyers prefer to move sooner with a smaller deposit, while others choose to save for longer before applying.

It’s also important to remember that buying a home involves costs beyond the deposit, including solicitor fees, surveys, moving costs, and other expenses that may arise during the process.

Can I Get a Mortgage in Coventry With No Deposit?

Some lenders offer 100% mortgages, meaning you may be able to buy a property without providing a traditional deposit.

These products are generally subject to strict criteria and are not available to every applicant. Lenders may look closely at factors such as your credit history, employment stability, income, and previous rental payment history.

Availability can also change over time, with some products only being offered to specific types of borrowers.

It’s still worth exploring your options with a deposit thought, as it can increase the number of mortgage products available and may give you access to more competitive rates, as you’re borrowing a smaller percentage of the property’s value.

Even a modest deposit can make a difference when lenders assess your application.

Can I Use a Gifted Deposit?

Yes, many lenders will accept a gifted deposit from a family member.

A gifted deposit is money that has been given to you towards your property purchase and does not need to be repaid. Lenders will usually require confirmation that the funds are a genuine gift rather than a loan.

The person providing the gift may also need to supply evidence showing where the money has come from. This forms part of the lender’s anti-money laundering checks.

If you’re planning to use a gifted deposit, it’s a good idea to make this known early in the process so the appropriate documents can be prepared.

Does Bad Credit Affect The Deposit I Need?

Bad credit can sometimes affect the deposit required for a mortgage.

Some lenders are willing to consider applicants with missed payments, defaults, County Court Judgements (CCJs), or other credit issues, although they may require a larger deposit than they would from someone with a stronger credit profile.

The amount required will often depend on the type of credit issue, when it occurred, and how your finances have been managed since.

Every lender assesses adverse credit differently, which means the deposit needed can vary significantly between mortgage products.

Does Being Self-Employed Affect My Deposit?

Being self-employed in Coventry does not automatically mean you’ll need a larger deposit.

Most lenders focus on how they assess your income rather than increasing the deposit requirement purely because you’re self-employed.

They will usually ask to see documents such as SA302s, Tax Year Overviews, or company accounts to verify your earnings. Some lenders may use your latest year’s income, while others may look at an average over a longer period.

If your income fluctuates or your business has only been trading for a short time, lender criteria can become more important. This is where understanding which lenders are comfortable with different types of self-employed income can be helpful.

How Much Deposit Do I Need For a £200,000 Property in Coventry?

The deposit needed for a £200,000 property will depend on the type of mortgage you’re applying for and the lender’s requirements.

If you’re applying for a 95% mortgage, you would usually need a 5% deposit of £10,000 and borrow the remaining £190,000. With a 90% mortgage, the deposit would increase to £20,000, reducing the amount you need to borrow from the lender.

Some buyers choose to save a larger deposit before applying. For example, a 15% deposit would be £30,000, while a 20% deposit would be £40,000. A larger deposit means you’re borrowing a smaller percentage of the property’s value, which may increase the range of mortgage products available.

The right deposit amount will depend on your circumstances, your budget, and how much you feel comfortable borrowing. While some buyers are able to move forward with a smaller deposit, others prefer to save for longer before applying.

Date Last Edited: June 9, 2026