Saving for a deposit is often the first big step on the journey to buying your own home. But one of the most common questions we hear is, “How much do I actually need?”
In our YouTube video, we break this down clearly and simply, helping you understand how much you’ll need to save and what your options are as a buyer.
What is a deposit?
A deposit is the amount of money you put towards the purchase of your property upfront. The rest is usually covered by a mortgage. Your deposit is a key part of your affordability, and how much you have can affect the mortgage deals available to you.
In the UK, the minimum deposit is typically 5% of the property’s value, but having more can give you access to better interest rates and more borrowing options.
How much should you aim for?
- 5% deposit – The minimum most lenders will accept. You’ll need a 95% mortgage, which may come with higher interest rates and stricter affordability criteria.
- 10–15% deposit – Aiming for this range can open up better rates and potentially give you more lender options.
- 20% or more – A larger deposit often unlocks the most competitive deals, reduces your monthly payments and can improve your chances of approval.
There’s no “one size fits all” here. The right deposit for you will depend on your income, savings, and the type of property you’re hoping to buy.
First-time buyers and support schemes
If you’re a first-time buyer, there are government-backed schemes and lender-specific options that can help make saving for a deposit more manageable.
It’s always worth speaking to a mortgage adviser to see what you may be eligible for and how much deposit you’ll need in your specific situation.
Why does your deposit matter?
Your deposit size impacts:
- The mortgage rate you’re offered
- How much you can borrow
- Your monthly repayments
- Your overall affordability
Even a small increase in your deposit could make a big difference over time, which is why planning and getting the right advice early is key.
Watch the full video
For a clear, honest explanation of how much deposit you need and what to consider, take a look at our YouTube video below. And if you’re just starting your journey or need help working out how close you are to your goal, we’re here to guide you. Visit our blog for more tips or get in touch for tailored advice.
Header Photo by RDNE Stock project / Pexels