How long is a piece of string? There are many variables at play when considering the ideal deposit to make your house purchase, but the primary one is most likely to be “What is the minimum deposit I can get away with to buy this house?”

Most of us, especially in our early years in the housing market, stretch ourselves to buy the best house we can afford. This is usually a balancing act between location, size and then add-ons like off street parking, garage, extra bedroom… swimming pool? OK, so most of us have to wait a while for the pool, but a minimum number of bedrooms and a location near a decent school are probably high on most family’s wish lists.

Post Credit Crunch, mortgage lenders are under a greater obligation than ever to make sure that the loans they make are affordable. They are also keen to see their customers putting some of their own money into the purchase. Therefore, at present, you will be required to put down a minimum of 5% of the purchase price, leaving 95% on mortgage.

In simple terms, the more deposit you can scrape together, the better the mortgage terms and the better the interest rate you are likely to obtain. Also, with a larger deposit you are of course borrowing less and there is therefore less to pay back and mortgage repayments will be cheaper.

The best deals on the market will usually require a 40% deposit, but with most first time buyers having between 5% and 20% to put down, there are mortgages to suit all. Of course, this is only part of the equation.

For an initial, no obligation, discussion to clarify your options why contact us or call now on 01628 507477.

Recent posts

The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers. 

Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer. 

A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.

Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.

The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.

Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.

As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more. 

The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.

Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.

Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.