How Much Do You Really Need for a House Deposit in the UK?

One of the biggest questions for first-time buyers is: How much do I actually need to save for a deposit? The answer isn’t always straightforward but understanding how deposits work is key to planning your home-buying journey.

In this post we’ll break down the different deposit requirements show how your savings affect your mortgage options and help you estimate how much you really need.

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What Is a House Deposit?

A house deposit is the upfront amount you pay towards the purchase of a property. The rest of the price is usually covered by a mortgage from a bank or lender.

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Minimum Deposit Required

• The minimum deposit for most mortgages is 5% of the property’s value.

• For example if the house costs £250 000 you’ll need at least £12 500 as a deposit.

• But a larger deposit often means better mortgage deals (lower interest rates smaller monthly payments).

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How Deposit Size Affects Mortgage Rates

LTV = Loan to Value or the portion of the property's value you're borrowing.

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Should You Aim for More Than 5%?

While 5% is enough to get started there are strong reasons to aim for more:

• Access to better interest rates

• Smaller monthly repayments

• Less risk of negative equity

• More negotiating power when applying for a mortgage

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Extra Costs to Consider

Your deposit isn’t the only thing you’ll need to save for. Don’t forget to budget for:

• Stamp Duty (may be discounted or exempt for first-time buyers)

• Legal fees and solicitor costs

• Survey and valuation

• Mortgage arrangement fees

• Moving costs

• Furniture and setup costs

Together these can easily add £3 000–£5 000+ to your total upfront cost.

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Help for First-Time Buyers

If you’re struggling to save a big deposit there are schemes that can help:

• Lifetime ISA (LISA): Save up to £4 000 per year and the government adds a 25% bonus.

• Shared Ownership: Buy a share of a property (from 10%) and pay rent on the rest.

• First Homes Scheme: Discounted new-build homes for local first-time buyers and key workers.

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Realistic Saving Targets

Here’s a rough idea of what you’d need to save for different property prices:

These figures don’t include the extra costs mentioned above.

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Final Thoughts

There’s no one-size-fits-all answer — but knowing the numbers helps you set clear savings goals. Even if you’re not ready to buy this year starting now with the right plan (and possibly a LISA) can get you closer.

Create your free WiseNest account to build a personalised plan for your first home and track your savings progress step by step.