How Much Deposit Do First-Time Buyers Need to Buy a House?

People often contact us when they are thinking about buying their first home and are unsure what deposit they need to get started. One of the most common questions our Conveyancing team receives from first-time buyers is how much deposit is required to purchase a property.

In a recent video shared during First Time Buyers’ National Home Buying Week, Sam Finn, Trainee Solicitor in our Conveyancing team, explains what buyers can expect when it comes to deposits and mortgage requirements.

What deposit is required to buy a house?

Sam explains that most mortgage lenders require buyers to contribute a minimum deposit of around 5% of the purchase price.

For example, if you are buying a property worth £250,000, a 5% deposit would be £12,500.

However, while 5% is often the minimum requirement, many buyers choose to provide a larger deposit if possible.

How a larger deposit can help

Providing a larger deposit, typically between 10% and 20%, can often result in more favourable mortgage terms. Lenders may offer better interest rates where the borrower is contributing a higher proportion of the purchase price.

This can make monthly repayments more manageable and may reduce the overall cost of borrowing over the lifetime of the mortgage.

Every buyer’s situation is different

The exact deposit required will depend on a range of factors, including the mortgage lender, the buyer’s financial circumstances, and the type of property being purchased.

For this reason, it is always advisable to speak with a mortgage adviser early in the process to understand what options may be available.

Working with an experienced conveyancing team can also help ensure the purchase process runs smoothly once a property has been secured.

Watch the video and get support

The full video, featuring Sam Finn answering this frequently asked question, is available on our social media channels as part of First Time Buyers’ National Home Buying Week.

If you are planning to buy your first home and would like advice about the conveyancing process, our specialist team would be happy to help.

You can contact our Conveyancing team by emailing MovingHome@watkinssolicitors.co.uk or calling 0117 939 0350 to discuss your situation and next steps.