Saving for a house deposit feels like an impossible mountain to climb, doesn’t it? You’re watching property prices tick upwards while your savings account grows at what feels like a snail’s pace. The good news? With the right strategy and a clear understanding of exactly how much you need, that deposit target becomes far more achievable than you think.
The average deposit for first-time buyers in the UK sits around £50,000 in 2025, though this varies dramatically by region. But here’s what most people don’t realize: you don’t necessarily need that much to get started. Understanding the minimum deposit requirements, how they affect your mortgage terms, and proven strategies to accelerate your savings can transform your timeline from “someday” to “this year.”
How Much Deposit Do You Need to Buy a Home in the UK?
The deposit you’ll need depends on several factors, but let’s break down the standard ranges and what they mean for your mortgage application.
Minimum Deposit: 5%
This is the absolute minimum for first-time buyers accessing 95% loan-to-value (LTV) mortgages. While this opens the door to homeownership sooner, be aware:
- Far fewer lenders offer these products
- Interest rates are significantly higher
- Stricter affordability criteria apply
- You’ll likely need a spotless credit history
Standard Deposit: 10%
This is the most common starting point for first-time buyers. A 10% deposit gives you:
- Access to considerably better interest rates than 5%
- Wider choice of mortgage lenders
- More competitive monthly repayments
- Greater borrowing power
Best Rates: 15%+
Once you reach the 15% threshold, you unlock substantially cheaper interest rates. This is where the maths starts working heavily in your favour – the difference in interest rates between 10% and 15% deposits can save you tens of thousands over your mortgage term.
High-Value Buyers: 25%+
For properties above £1 million, particularly luxury assets, expect deposit requirements between 20-40%. Private banks typically prefer 30-40% deposits for high-value properties, offering more flexible terms and bespoke solutions for complex income structures.
Deposit Requirements by Property Value:
| Property Price | 5% Deposit | 10% Deposit | 15% Deposit | 25% Deposit |
|---|---|---|---|---|
| £200,000 | £10,000 | £20,000 | £30,000 | £50,000 |
| £300,000 | £15,000 | £30,000 | £45,000 | £75,000 |
| £500,000 | £25,000 | £50,000 | £75,000 | £125,000 |
| £750,000 | £37,500 | £75,000 | £112,500 | £187,500 |
What Affects How Much Deposit You Need?
Your deposit requirement isn’t just about the property price. Several factors influence how much lenders expect you to put down:
Your Credit Score A lower credit score often means lenders require a higher deposit to offset their perceived risk. If your credit history isn’t perfect, expect to need 10-15% rather than the minimum 5%.
Your Employment Type Self-employed buyers frequently face higher deposit requirements – typically 10-15% minimum. Lenders view variable income as higher risk, even when your earnings are substantial. Having multiple income streams or complex financial arrangements may require specialist mortgage advisers who understand how to present your financial position effectively.
Property Type
- New builds often require 10-15% minimum deposits
- Flats sometimes need higher deposits due to lender risk policies around leasehold properties
- Unique or listed properties may require 20-25% deposits
- Properties requiring significant work typically need bridging finance with different deposit structures
Mortgage Product Chosen Interest-only mortgages, offset mortgages, or applications with complex income structures all influence deposit requirements. These specialist products offer tremendous flexibility but typically require larger deposits – 20-30% isn’t unusual.
For high-value property financing, bespoke mortgage solutions can structure deposits and terms that standard lenders simply won’t consider.
Additional Costs Most Buyers Forget to Save For
Your deposit is just one part of the cash you’ll need. These additional costs catch most buyers off-guard:
Stamp Duty
- First-time buyers: No stamp duty on properties up to £425,000 (relief applies up to £625,000)
- Home movers: Stamp duty starts at £250,000
- Additional properties: 3% surcharge applies
Use the official Gov.uk Stamp Duty Calculator to work out your exact liability.
Solicitor Fees Budget £1,200–£2,000 for conveyancing services. Don’t cheap out here – a good solicitor protects you from absolutely volcanic legal issues down the line.
Valuation and Survey Fees
- Basic valuation: £250–£600
- Homebuyer’s report: £400–£900
- Full structural survey: £600–£1,500
Mortgage Broker Fee If applicable, typically 0.5-1% of the loan value. Professional advice can save you substantially more than the fee costs, particularly for complex cases.
Moving and Furnishing Costs Budget £2,000–£5,000 for removal services, immediate repairs, and essential furniture. This is where many buyers run short after completion.
Total Cash Needed Beyond Deposit:
| Property Price | Stamp Duty (Mover) | Legal & Survey | Moving Costs | Total Additional |
|---|---|---|---|---|
| £300,000 | £2,500 | £2,500 | £3,000 | £8,000 |
| £500,000 | £15,000 | £3,000 | £4,000 | £22,000 |
| £750,000 | £27,500 | £3,500 | £5,000 | £36,000 |
How to Save for a House Deposit Faster (UK-Specific Tips)
Right, let’s get tactical about accelerating your savings. These strategies work:
1. Set Your Target Number Based on Salary and Affordability
Work backwards from your goal. If you need £30,000 for a 10% deposit on a £300,000 property, and you can save £500 monthly, that’s a 5-year plan. Can you increase that monthly amount? Every £100 extra cuts months off your timeline.
2. Use a Lifetime ISA (LISA) for the 25% Bonus
This is free money from the government. Contribute up to £4,000 annually and receive a £1,000 bonus. Over five years, that’s £5,000 in bonuses alone. The LISA is specifically designed for first-time buyers purchasing properties up to £450,000. Learn more about Lifetime ISAs on MoneyHelper.
3. Automated Money Pots
Use banking apps like Monzo, Starling, or Chase that let you automatically sweep money into savings pots. Round-ups, scheduled transfers, and savings goals all remove the temptation to spend.
4. Reduce the ‘Rent Penalty’
Consider temporary shared living or moving back with family if possible. Cutting £400-£600 monthly from rent and redirecting it to savings can slash years off your timeline. I know it’s not glamorous, but it’s effective.
5. Sell Unused Items and Create Side Income
Clear out your spare room, garage, and storage. Selling items you don’t use can generate £1,000-£3,000. Side income from freelancing, consulting, or part-time work accelerates deposits tremendously.
6. High-Interest Savings Accounts for Deposits
In 2025, regular savers and fixed-term accounts offer competitive rates. Shop around – the difference between 3% and 5% interest on £20,000 is £400 annually.
7. Make Your Rent Payments Count
Services like Experian Boost and Credit Ladder report your rental payments to credit agencies, building your credit score. A better credit score means access to better mortgage rates and potentially lower deposit requirements.
8. Reduce Existing Debt to Improve Affordability
Lenders assess your debt-to-income ratio. Paying off credit cards, car loans, and personal loans before applying for a mortgage improves how much they’ll lend you, potentially reducing the deposit percentage you need.
How Long Will It Take to Save a Deposit? (Real Examples)
Let’s look at realistic scenarios based on UK salaries:
Example 1: Single Buyer Earning £35,000
Saving £500 per month generates £6,000 annually. For a 10% deposit on a £250,000 home (£25,000), this requires just over 4 years. Adding LISA bonuses reduces this to approximately 3.5 years.
Example 2: Couple Earning £80,000 Combined
Saving £1,000 per month generates £12,000 annually. For a 10% deposit on a £350,000 home (£35,000), this requires under 3 years. With LISA bonuses for both partners, this drops to approximately 2.5 years.
Simple Formula:
Deposit Needed ÷ Monthly Savings = Months Required
Don’t forget to factor in LISA bonuses (25% on contributions up to £4,000 annually) and any existing savings or gifts from family.
Can You Buy a Home With a Small Deposit?
Yes, but with trade-offs. Let’s examine the options:
95% Mortgages (5% Deposit)
Available but limited. You’ll face:
- Higher interest rates (typically 1-2% above standard rates)
- Stricter affordability checks
- Fewer lender options
- Higher monthly repayments
100% Mortgages (No Deposit)
Extremely rare and typically guarantor-backed. A family member with property equity guarantees your loan. Risks are substantial for the guarantor.
Shared Ownership
Purchase 25-75% of a property and pay rent on the remainder. Your deposit is on your share only – so a 25% share of a £300,000 property (£75,000) requires just £7,500 with a 10% deposit. You can “staircase” up to full ownership over time.
First Homes Scheme
Offers 30-50% discounts on new-build properties for first-time buyers with household incomes under £80,000 (£90,000 in London). A 30% discount on a £300,000 property (£210,000) means a 10% deposit of just £21,000. Check eligibility on the Gov.uk First Homes Scheme page.
These schemes open doors sooner, but always run the numbers carefully. Lower deposits mean higher interest costs over your mortgage term.
For specialist financing options including bridging loans, development finance, or complex income mortgages, Million Plus offers bespoke solutions that standard lenders won’t provide.
When Is It Better to Save a Larger Deposit?
Sometimes patience pays off substantially:
Interest Rate Savings
The difference in interest rates between deposit levels is significant:
- 5% deposit: Rates around 5.5-6%
- 10% deposit: Rates around 4.5-5%
- 15% deposit: Rates around 4-4.5%
- 25% deposit: Rates around 3.5-4%
On a £300,000 mortgage over 25 years, the difference between a 5.5% rate (5% deposit) and a 4% rate (15% deposit) is approximately £45,000 in total interest. That’s absolutely worth waiting an extra year or two if you can.
Avoiding Negative Equity
If property prices dip, small deposits can push you into negative equity where you owe more than your home’s worth. A larger deposit provides a buffer against market fluctuations.
Better Mortgage Terms
Higher deposits unlock better mortgage products, including:
- Ability to overpay without penalties
- More flexible terms
- Portability options if you need to move
- Offset mortgages that can save thousands in interest
If you’re considering remortgaging to buy a second property, having substantial equity from a larger initial deposit gives you significantly more options.
Final Recommendation
The reality is this: there’s no single “right” deposit amount that works for everyone. The minimum might get you on the property ladder faster, but a larger deposit saves you substantially more over your mortgage lifetime.
For most first-time buyers, targeting a 10-15% deposit strikes the right balance between speed and cost-efficiency. This typically means saving £25,000-£45,000 for properties in the £250,000-£300,000 range.
Remember that affordability matters more than hitting the minimum deposit. Stretching to buy a property you can barely afford creates stress and financial vulnerability. The goal is sustainable homeownership, not just scraping over the threshold.
If you have complex income structures, are self-employed, or are looking at high-value properties above £500,000, specialist mortgage advice becomes essential. Contact Million Plus at Paul.welch@millionplus.com to discuss bespoke financing solutions that match your specific situation.
Key Actions:
- Calculate your realistic target using the tables above
- Open a Lifetime ISA immediately if you’re a first-time buyer
- Automate your savings to remove temptation
- Factor in all additional costs beyond the deposit
- Review and adjust every six months
The deposit mountain is climbable. You just need the right strategy, realistic timelines, and a clear view of the summit. Start today, stay consistent, and that property purchase becomes not just possible but inevitable.
