How Much Do I Need To Save For A House Deposit In The UK?

In the UK, most people need to save 5-20% of a property’s value for their deposit.

‍It’s one of the first things you’ll think about when you start making moves toward buying your own place, and it can feel like a big number at first. Before you start scrolling through Rightmove and daydreaming about paint colours, let’s talk about what deposit is right for you and how much you really need to save when you’re buying a home.

The key takeaways to consider:

You can buy a property with just a 5% deposit, but it’s really just the starting point and won’t always get you the best mortgage deal
The more you’re able to save towards your deposit, the better the deal tends to be, with lower interest rates and more manageable monthly payments
Most buyers aim for around 10–15% because it’s a realistic balance between buying sooner and saving on interest in the long-term
It’s not just about the deposit, as you’ll likely need an extra £3,000–£5,000 or more to cover fees and moving costs
It’s often better to start with what you can comfortably afford each month and then work backwards to set your deposit goal

How much is the minimum deposit for a property?

In the UK, most lenders will let you buy with a minimum of a 5% deposit. That’s the official starting line as set out by the government’s Mortgage Guarantee Scheme (which helps lenders offer more loans to homebuyers with a smaller deposit).

What does that work out to be? It depends on the value of the properties you’re looking at. Here’s what you could look at saving:

What is the fastest way to save for a home deposit?

The quickest ways to save for a deposit don’t usually come from one big change. It’s a combination of smaller decisions that work together and build momentum over time.

Here are practical ways to move forward and build your savings for your deposit:

For a £200,000 property, you’d need around £10,000 for a deposit
For a £300,000 property, it’s £15,000
For a £400,000 property, you’d be aiming for £20,000

It’s by no means a small amount, but it gives you a good idea of the minimum goal you could work towards. Having the confidence to make a plan and start saving is sometimes the hardest part, so well done.

But here’s something to think about: your deposit size can help you get better mortgage deals. This means you might want to consider saving for longer to have a bigger deposit ready.

Why does a bigger deposit help when buying a property?

With a bigger deposit, you’re seen as lower risk than if you have the minimum deposit. Lenders are basically asking one thing when they look at your mortgage application: How risky are you?

If you put down a bigger deposit, it reduces your loan-to-value ratio, which means the lender’s loan becomes smaller compared to the property value. If house prices fall or if they have to repossess and sell the home, there is a lower chance they’ll lose money.

With a smaller or minimum deposit, you could be seen as a higher risk, which means lenders will protect themselves by charging higher interest rates and limiting your mortgage options.

What are the benefits of saving a 10-15% deposit?

Once you reach your savings goal of 10% of a property, you’re seen as a more attractive borrower to lenders. What does this mean? Interest rates tend to drop, and mortgage options widen.

Let’s do the maths on a 10% property deposit:

For a £250,000 property, you’d need around £25,000 for a deposit
For a £300,000 property, it’s £30,000
For a £400,000 property, you’d be aiming for £40,000

Yep, you’re doubling what you would need to save for a 5% deposit, which can feel intimidating. But matched with a strong credit history and the right mortgage deal, the difference can save you a serious amount in interest (often thousands).

It’s why so many people aim to save more, even if it takes a bit longer to get there.

Is it worth saving up a 20% property deposit?

A 20% deposit could get you access to better rates, lower monthly repayments and more flexibility. So, if you can manage it, brilliant. Go for it!

But realistically, for most first-time buyers in the UK, a 20% deposit for your dream home might feel a bit out of reach. That’s okay, though. You don’t need to get to that level to make buying a home work. This is your journey, and it’s important to make it feel sustainable and motivational for you.

What are the extra costs on top of a deposit?

There are a lot of other costs to consider when you’re looking at buying a home, not just the deposit!

You’ll need to cover things like:

Solicitor fees
Surveys
Moving costs
Stamp Duty (depending on the price of the property and whether you’re a first-time buyer)

You’ll likely want to save an extra £3,000 to £5,000+ on top of your deposit to cover these costs. By doing this, you can be prepared for anything that might come your way and take it on with confidence.

While you save up for a deposit in a high-interest savings account (like a Lifetime Individual Savings Account), Loqbox is a good option for you to save for these extra costs while you build your credit. Your membership lets you save up and strengthen your credit history in preparation for buying your own place. Find out more about how it works here.

‍Improvements to your credit score are not guaranteed.

Not sure where to begin when it comes to saving for a deposit? Head to our guide on savings tips here.

How much should you aim for?

It completely depends on you and your situation. Your timeline, income and how quickly you want to move in should all influence your savings goal.

Think about these questions:

Am I trying to buy as soon as possible?
Am I happy to wait a bit longer for a better mortgage?
What monthly payments actually feel comfortable to me?

If you have debts like credit card bills or personal loans, see if you can pay them off first so you have more money left over every month to save. Plus, it will show lenders you have your money under control, making them more likely to give you a great mortgage deal.

How can you find more money for a deposit?

Finding extra money for your deposit doesn’t always mean earning more. You could use comparison sites to switch your bills and cut monthly costs, move to a bank account that offers cash rewards or account-switching bonuses, or take a closer look at your spending to see what can be redirected into savings.

It’s also worth remembering your deposit doesn’t have to come from savings alone. Some buyers use gifted money from family, inheritance, or proceeds from a previous sale. Just be aware that lenders will usually ask for proof of where the money has come from.

Consider setting your goal like this

Instead of obsessing over hitting a specific deposit goal, start with what you can afford each month on a mortgage and work backwards. For example, if you know you’re comfortable paying about £1,000 monthly for your mortgage, that’ll give you an idea of what you might be able to borrow. From there, you can start to see what kind of property price fits and what size deposit you’ll need to get there.

This should give you a clearer price range and timeline, which makes sense for you given your current situation. If your circumstances change, stay flexible and adjust your plan accordingly.

Buying your own home isn’t just about ticking some perfect financial box; it’s about moving yourself into a place you can be happy in, both emotionally and financially.

It’s a mighty achievement to save up for a deposit but if you take your time, stay consistent and believe in yourself, you’ve got this.