December 16, 2025
What Buyers Need to Know About Deposits in Glasgow, Edinburgh and London Property Markets
For many buyers, the most stressful part of planning a property purchase is working out one simple question:
What deposit do I need to buy a property in Glasgow, Edinburgh or London?
The answer is rarely one fixed percentage. Deposit requirements depend on where you are buying, how lenders assess risk in different markets, and your individual financial profile.
This guide explains how deposit expectations differ across Glasgow, Edinburgh, and London, highlights common mistakes buyers make, and shows why early advice can make the difference between realistic planning and repeated disappointment.
Understanding What a Mortgage Deposit Is
A mortgage deposit is the amount of money you contribute towards the purchase of a property. The remaining balance is funded by a mortgage from a lender.
For example:
• Property price: £300,000
• Deposit: £30,000 (10%)
• Mortgage: £270,000
In general, the larger your deposit, the lower the lender’s risk. This usually leads to better interest rates, more lender choice, and smoother affordability checks.
Minimum Deposit Requirements in the UK
Many UK lenders technically offer mortgages with deposits starting from 5 percent. However, what is possible on paper is not always practical in real property markets.
Typical deposit bands look like this:
• 5%: Limited lenders, higher interest rates, tighter criteria
• 10%: Wider choice, more stability
• 15,20%: Better rates, lower monthly repayments
• 25% or more: Access to premium mortgage products
This is where location plays a major role.
Deposit Requirements in Glasgow
Glasgow remains one of Scotland’s more accessible cities for buyers, particularly first time buyers.
What Buyers Can Expect in Glasgow
• Many buyers can purchase with a 5,10% deposit
• Property prices are generally lower than Edinburgh and London
• Competition exists, but affordability is stronger
A Key Consideration in Scotland: Home Report Values
In Scotland, lenders base mortgage offers on the Home Report valuation, not necessarily the price you agree to pay.
If you offer above the Home Report value, the difference usually needs to be covered in cash. This effectively increases the deposit required, even if your percentage looks acceptable on paper.
Deposit Requirements in Edinburgh
Edinburgh is one of the most competitive property markets in the UK.
What Buyers Can Expect in Edinburgh
• A 10% deposit is often the realistic starting point
• Offers over Home Report value are common
• Buyers frequently need additional cash beyond the mortgage deposit
Why Deposits Feel Higher in Edinburgh
• Strong demand
• Limited housing supply
• Competitive closing dates
Even buyers with a 10% deposit may find they need extra savings to compete successfully.
Deposit Requirements in London
London presents the biggest challenge for most buyers due to price levels and stricter affordability testing.
What Buyers Can Expect in London
• Some lenders accept 5% deposits, but affordability checks are tougher
• High property prices mean deposits are larger in cash terms
• Income multiples and stress tests are more restrictive
For example:
• 5% of £600,000 is £30,000
• 10% of £600,000 is £60,000
The Practical Reality in London
Most successful buyers in London require deposits closer to 10,15% to:
• Pass affordability assessments
• Access competitive rates
• Reduce monthly repayment pressure
Deposit Comparison: Glasgow vs Edinburgh vs London
Below is a realistic comparison of typical deposit expectations.
- Typical minimum deposit: 5%
- Realistic deposit range: 5–10%
- Key challenge: Mortgage lending is based on the Home Report value, meaning buyers often need extra cash if their offer is above valuation.
- Typical minimum deposit: 10%
- Realistic deposit range: 10–15%
- Key challenge: Competitive markets with closing dates often require offers well above valuation.
- Typical minimum deposit: 5%
- Realistic deposit range: 10–20%
- Key challenge: High property prices and stricter affordability stress tests can limit borrowing despite strong income.
How Your Circumstances Affect Deposit Size
Location is only part of the equation. Lenders also assess:
• Credit history
• Employment type (employed, self employed, contractor)
• Income stability
• Existing financial commitments
• Property type
For example:
• Self employed buyers may need larger deposits
• Flats above commercial premises often require higher deposits
• New build properties may come with stricter lending criteria
This is why two buyers in the same city can face very different deposit requirements.
Common Deposit Mistakes Buyers Make
Mistake 1: Assuming 5% Is Always Enough
While technically possible, a 5% deposit often limits lender choice and increases monthly costs.
Mistake 2: Forgetting About Additional Costs
Buyers also need to budget for:
• Solicitor fees
• Land and Buildings Transaction Tax in Scotland
• Stamp Duty in England
• Surveys and moving costs
Mistake 3: Saving Without Advice
Many buyers save for years without knowing what lenders will actually accept, leading to frustration and missed opportunities.
How a Mortgage Broker Helps You Plan the Right Deposit
A mortgage broker helps by:
• Assessing what deposit you realistically need
• Matching lenders to your specific circumstances
• Explaining how deposit size affects rates and approval chances
• Helping avoid rejected applications
For buyers asking what deposit do I need to buy a property in Glasgow, Edinburgh or London, personalised advice can save months, or even years, of uncertainty.
Pelican Finance Limited supports buyers across Scotland and London with clear, practical guidance that helps set realistic expectations from the start.
Frequently Asked Questions
Can I buy a property with a 5% deposit?
Yes, but lender choice is limited and interest rates are higher. In competitive markets, larger deposits are often more practical.
Do buyers in Edinburgh need larger deposits?
Often yes, due to offers over valuation and competitive demand.
Is London harder than Scotland for deposits?
In cash terms, yes. Higher prices and stricter affordability rules make deposits more challenging.
Does a larger deposit guarantee approval?
No, but it significantly improves your chances and reduces overall costs.
Should I speak to a broker before saving my deposit?
Yes. Early advice helps you set a realistic savings target based on how lenders actually assess applications.