How Much Deposit Do You Need to Buy a House? The 2025 Guide for First-Time Buyers

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Buying a house can feel overwhelming, especially with the rise in UK house prices over recent years. Homebuyers can easily get caught up in the complexity of the process, and saving for a deposit often requires significant financial planning and commitment.
House deposits are a crucial part of purchasing a property, as they form the main upfront cost needed to begin the buying process.
One of the most common questions we receive at MME Mortgages is: how much deposit do you need to buy a house?
As mortgage advisors based in Leicester, we’ve put together the following guide to help you understand the main considerations based on the information we regularly share with our clients.
For tailored advice based on your specific circumstances, please contact our team directly at 0116 279 0068 to speak to one of our qualified mortgage advisors in Leicester.

What Affects Mortgage Deposit Amounts?

Several factors can influence the deposit required when buying a property. Here are a few key considerations:

✔ Value of the property: The more expensive the property, the higher the deposit is likely to be.
✔ First-time buyers: Government schemes, such as the Mortgage Guarantee Scheme, may allow first-time buyers to access mortgages with deposits as low as 5%, subject to eligibility and lender participation.
✔ Lender deposit requirements: Different lenders have different deposit policies, generally ranging between 5% and 10%, depending on your financial circumstances.
✔ Economic conditions: Changes in the wider economy, such as inflation or disposable income growth, can influence savings patterns and, in turn, deposit amounts.
✔ Interest rates: Fluctuations in interest rates can affect mortgage affordability, which may impact the deposit size some buyers aim for.
✔ Personal saving habits: Regular contributions to savings accounts over time can significantly improve your ability to raise a deposit.
✔ Choice of lender: While some lenders offer more flexible products, it’s important to focus on the full terms of the mortgage rather than brand reputation alone.

Larger deposits often lead to more favourable mortgage terms, such as lower interest rates and monthly repayments. It’s something worth considering when planning your home purchase.

Please note: The information above is provided as general guidance only and does not constitute personalised mortgage advice.

How Much Deposit is Typically Needed to Buy a House?

In most cases, a deposit of around 10% of the property’s value is required. Some lenders may offer mortgages with a 5% deposit through government-supported schemes, but these options can be more limited and subject to specific criteria.

A 20% deposit is generally seen as a strong position, often helping borrowers secure more competitive mortgage rates and lower monthly repayments.

Typical deposit figures:

✔ For many properties across the UK, deposits may start from around £10,000 to £11,000.

✔ For London properties, initial deposits often start much higher, in the range of £40,000 to £50,000 or more, reflecting higher property prices.

To help you estimate potential mortgage repayments, you can use our mortgage calculator.

Extra Costs to Consider Beyond the Deposit

It’s easy to focus purely on the deposit when budgeting for a house purchase, but it’s essential to factor in other upfront costs. These can include:

• Valuation fee: Up to £500 for a lender’s property valuation.
  
• Arrangement fee: Up to £1,000 for setting up the mortgage.
  
• Legal fees: Covering conveyancing costs, typically up to £1,500.
  
• Stamp Duty: Payable based on the purchase price of the property. Use our stamp duty calculator to find out how much you may need to pay.

MME Mortgages’ House Deposit Tips

Here are a few general tips we share with clients looking to strengthen their position when saving for a house deposit:

• Save early and regularly: Small, consistent contributions over time can make a big difference.
  
• Aim for a larger deposit if possible: A higher deposit may help secure better mortgage rates and lower monthly repayments, depending on your circumstances.
  
• Explore government schemes: First-time buyers should explore all government initiatives to see if they qualify for additional support.
  

At MME Mortgages, we are proud to be leading mortgage advisors in Leicester and the East Midlands.

If you would like personalised advice on mortgage deposits or any aspect of the buying process, please contact our team today at 0116 279 0068. We are here to help.

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