How Much Deposit Do You Need to Buy a Property in Glasgow, Edinburgh or London?

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If you’re asking what deposit do I need to buy a property in Glasgow, Edinburgh or London, you’re asking one of the most important questions homebuyers raise at the very start of their journey.

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The short answer is simple. Your deposit depends on where you’re buying, your financial profile, and the type of mortgage you need.

The useful answer is below.

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What Is a Mortgage Deposit and Why It Matters

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A mortgage deposit is the money you contribute upfront when buying a property. The remaining amount is covered by a mortgage from a lender.

In the UK, deposits are expressed as Loan to Value percentages:

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 • 95% LTV equals a 5% deposit
• 90% LTV equals a 10% deposit
• 85% LTV equals a 15% deposit
• 75% LTV equals a 25% deposit

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A larger deposit usually means:

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• Better interest rates
• More lender choice
• Smoother approval

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This matters even more in Scotland and London, where lender caution and pricing vary significantly by location.

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Deposit Requirements in Glasgow, Edinburgh and London

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Glasgow: Deposit Expectations

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Glasgow is one of the more accessible cities for buyers in Scotland, particularly first time buyers.

Typical deposit ranges:

 • 5% deposit possible for strong first time buyers
• 10% deposit opens wider lender access
• 15% plus strengthens approval and lowers monthly payments

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Example:

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For a £180,000 property in Glasgow:
• 5% deposit equals £9,000
• 10% deposit equals £18,000

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Glasgow buyers often benefit from flexible lender criteria, especially when supported by a whole of market mortgage broker.

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Edinburgh: Higher Competition, Higher Deposits

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Edinburgh is more competitive and typically requires larger deposits.

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Typical deposit ranges:

 • 10% deposit is a realistic starting point
• 15% deposit is common for better rates
• 20% plus is often needed for central or premium properties

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Why deposits feel higher in Edinburgh:

• Higher property values
• Strong buyer demand
• Lender valuation scrutiny

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Scottish Home Reports are critical here. If a property sells above valuation, the difference is usually paid in cash on top of the mortgage deposit.

This is covered in more detail in deposit planning for Scottish Home Reports.

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London: Why Deposits Are Usually Larger

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London presents the greatest challenge for most buyers.

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Typical deposit ranges:

• 10% deposit possible but restrictive
• 15 to 20% deposit far more common
• 25% plus often required for complex or high value cases

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Example:

Buying a £500,000 property in London:
• 10% deposit equals £50,000
• 20% deposit equals £100,000

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Lenders look closely at:

• Income sustainability
• Job stability
• Credit history
• Ongoing financial commitments

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This is where mortgage affordability advice in London becomes essential.

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Can First Time Buyers Buy With a 5% Deposit?

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Yes, but context matters.

A 5% deposit mortgage may be possible if:

• Credit profile is strong
• Income comfortably supports repayments
• The property meets lender criteria
• Affordability stress tests are passed

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However:

• Interest rates are higher
• Fewer lenders participate
• Criteria is stricter in London and Edinburgh

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Many buyers assume 5% is their only option. In practice, moving from 5% to 10% can unlock significantly better outcomes.

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Does Being Self Employed or a Contractor Change Deposit Needs?

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Often, yes.

If you are:

• Self employed
• A contractor
• A company director
• A small business owner

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Lenders may:

• Require 10 to 15% deposits
• Ask for one to two years of accounts
• Assess income differently

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This does not make buying harder. It means lender selection and application structure matter.

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Pelican Finance works with lenders that accept retained profits, day rate calculations, and specialist income profiles.

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Buy to Let Deposit Rules in Scotland and London

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Buy to let deposits are higher than residential.

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Typical buy to let deposits:

• 25% minimum
• 30% plus for limited company or higher risk cases

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This applies across Glasgow, Edinburgh, and London.

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Rental stress testing, property type, and expected yield all influence outcomes. This is explored further in buy to let mortgage requirements in Scotland and London.

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Additional Costs Buyers Often Overlook

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When asking what deposit is needed, many buyers forget additional costs:

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• LBTT in Scotland or Stamp Duty in England
• Legal fees
• Survey and valuation costs
• Broker fees where applicable
• Moving costs
• Home Report shortfalls in Scotland

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The true cash requirement is often higher than the deposit alone.

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How a Mortgage Broker Helps You Plan the Right Deposit

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Pelican Finance Limited supports buyers by:

• Identifying lenders with lower deposit options
• Advising when saving more improves outcomes
• Structuring applications to maximise approval
• Avoiding failed applications that harm credit
• Explaining Scotland versus London differences clearly

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Instead of guessing, buyers get clarity.

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Frequently Asked Questions

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What is the minimum deposit to buy a house in Scotland?

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Usually 5%, though 10% is more realistic in competitive areas.

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Can I buy a home in London with a 5% deposit?

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Yes, but options are limited. Many buyers need 10 to 20%.

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Does my deposit affect my interest rate?

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Yes. Larger deposits usually mean lower rates and more choice.

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Can family gift my deposit?

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Yes, most lenders accept gifted deposits with proper documentation.

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What if the valuation is lower than the price?

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In Scotland, the difference is normally paid in cash.

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Final Thought

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There is no single answer to what deposit do I need to buy a property in Glasgow, Edinburgh or London.

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It depends on:

• Income
• Employment type
• Credit profile
• Location
• Property type

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This is why personalised advice matters more than generic calculators.

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Pelican Finance Limited helps buyers across Scotland and London understand their real options, not just headline figures.

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