Saving for a house deposit is the biggest hurdle for most first-time buyers. But how much do you actually need? The answer depends on property prices in your area and how much you want to borrow.
Deposit Percentages Explained
5% Deposit
- Minimum for most mortgages
- Higher interest rates
- Gets you on the ladder faster
- Smaller buffer if house prices fall
10% Deposit
- More mortgage options available
- Better interest rates than 5%
- Good balance of speed and value
15-20% Deposit
- Best interest rates
- Lower monthly payments
- Takes longer to save
- Significant financial security
ℹ️ Example: £250,000 Property
5% deposit: £12,500 10% deposit: £25,000 15% deposit: £37,500 20% deposit: £50,000
How Deposit Size Affects Your Mortgage
Larger deposits mean:
- Lower interest rates (saves thousands over mortgage term)
- Lower monthly payments
- More lender options
- Better chance of approval
- Less risk of negative equity
Calculate Your Deposit Goal
Use our savings calculator to find how long it will take to save your deposit.
Other Costs Beyond the Deposit
Budget for these on top of your deposit:
- Stamp Duty: None for first-time buyers under £425,000
- Solicitor/Conveyancing: £1,000-2,000
- Survey: £300-600+
- Mortgage fees: £0-2,000
- Moving costs: £500-2,000
- Initial furnishing: Variable
How to Save Faster
- Use a Lifetime ISA for 25% bonus
- Reduce rent (live with parents if possible)
- Cut discretionary spending temporarily
- Save any windfalls (bonuses, tax refunds)
- Consider buying with a partner (combined savings)
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