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A Guide to your House Deposit

Looking to buy a home? Wondering how much you’ll need for a deposit? Tired of rhetorical questions? Want us to stop using them? Okay… You’re in the right place!

Welcome back to another MO article post! This time, we’re talking about house deposits – oooo, exciting.

Yes, if you’re here, on this page, you’re probably considering of moving out of that dingy flat, or your childhood bedroom, and looking to buy yourself a brand new (or pre-owned) home. However, before you can even dream of moving out and getting yourself a mortgage, you’ll need to know how much deposit you need for a house.

Luckily, we’re going to tell you all about deposits in this post – we’re so good to you.

House Deposit savings

Why do I need a house deposit?

You know the old phrase ‘you can’t get something for nothing’, well that applies to mortgages too. A lender isn’t going to fork over large amounts of money without you putting anything down, it just doesn’t make sense for them. A deposit shows you’re serious about borrowing a mortgage for a house – if you didn’t need one, everyone and their mums would have one! So, if you’re truly serious about landing yourself a house and a mortgage, you’re going to need a deposit first.

How much do I need?

Ah, the answer you’ve all been waiting to read. Typically, you’ll need between 5-10% of the house’s price for a deposit – in order to land yourself a mortgage. However, the more you have, the better. Yes, the more money you can bring to your mortgage provider, the better you are in their eyes. Because their investment feels safer with a larger deposit down, they’ll be slightly keener to lend you the mortgage.

Let’s give you an example, so you can see just what we mean:

Say your first house is around £200,000. You’ll need between 5% (£10,000) and 10% (£20,000) in order to secure the mortgage to purchase your new house.

Of course, that’s just an example. But usually, if you bring a 5% deposit, you’ll receive the other 95% through the mortgage and the same with 10% etc. Like we said, the more you’ve got, the better you are in the eyes of mortgage lenders. So, if you can wait – wait. Save, save and save until you have a large deposit for your future home.

Money Saving Tips

So, if you’re wondering how to come up with the money to save for a deposit, we’ve got some handy tips that may help you along the way. Saving money isn't easy, but with a bit of willpower and planning, you can make it so!

  1. Stop Renting

Whilst this is easier said than done if you can find somewhere rent free – send us the details. Chances are your parents might let you kick around for a bit longer at a severely reduced rent rate (if you ask nicely). Alternatively, if you don’t want to move back home, find somewhere cheaper to rent. You may have to downsize for a bit, but it will be worth it in the long run.

  1. Stricter Budgeting

Tighten those purse strings, budgeting is going to help you save for a deposit. By saying no to a few nights out and those extra drinks, you’ll be able to save yourself a small fortune each month. There’s loads of handy apps that can help you save each month. By cutting back, you’re helping yourself secure your first home – so saying no to a takeaway every now and then is for your own good! Open up a savings account to help you out and avoid spending on that credit card!

  1. Team Up

Maybe you’ve got a friend or partner you can look at buying a house with? (don’t scare them off though). Yes, by teaming up with a mate, you can come up with the deposit for a house, pay the mortgage off and split the house sale between you. It’s ideal to do this with someone you wouldn’t mind living with. This way you only need to save roughly half of the deposit you would typically need! Just do it with someone you trust and tolerate…


These are just a few tips to help you save for a deposit. Remember, you’ll need around 5%-10% of your desired house’s price - so get saving! The more you can save, the better it is. So, if you don’t mind putting off and saving for a bit, do it. To find out how much you could borrow for your mortgage, use our online application process to find personalised mortgage results that are right for you! At Mortgages Online we're all about finding the best mortgage deals for you, we can even chuck in a life insurance qoute too! Tell us what your mortgage deposit is, and we'll see what we can do!


Laura Waller

Laura Waller has been working in the mortgages industry since 2013, joining an independent brokerage in Essex. Laura has CeMAP 2 & 3 – Certificates in Mortgages Advice and Practice. Since then Laura oversees marketing for Mortgages Online, using her experience and expertise to write articles and blogs about mortgages and related topics.

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