You should aim to put down at least 5% of the purchase price of your property as a mortgage deposit.
But if you put down a bigger deposit, you'll be able to get better mortgage rates.
Find out more about how mortgage deposits work and how to buy your first home sooner below.
What is a mortgage deposit?
A deposit is the money you put towards buying a property that comes from your own pocket, rather than the money that comes from a mortgage. It tends to be measured as a percentage of what the property costs.
For example, if you’re hoping to buy a property that costs £150,000 and you have £15,000 saved up that you can put towards it, you would be putting down a 10% deposit. You’d need to borrow £135,000 from a mortgage lender.
Usually, the higher the percentage that you buy yourself, the better your mortgage rates, meaning it will cost you less to pay your mortgage each month.
Mortgage lenders like you to put some of your own money towards buying a house. That’s because it gives you a good reason to look after the property and to keep paying the monthly mortgage repayments – if you don’t, you could lose your own money.
Some providers are starting to offer "100% mortgages" or "No-deposit mortgages", where you don't need to use a deposit at all. These are available usually only to first-time buyers who have been renting (and paying their rent on time) for at least a year. They usually have higher interest rates than mortgages where you have paid a deposit but they can be a good option for some.
How much is a mortgage deposit?
In the UK, you will usually need to pay at least 5% of the cost of the property yourself as a deposit.
But this depends on the mortgage lender and your own situation, for example first-time buyers are more likely to be approved for mortgages with low deposits.
Some mortgage lenders will ask for a bigger deposit than this and a general rule-of-thumb is to save a deposit that is 20% of the price of the property you want to buy.
So, in our £150,000 house example above, a 20% deposit would be £30,000.
Get up to £1,000 extra towards your first home deposit every year with a OneFamily Lifetime ISA
What are the costs of buying a house?
While your mortgage deposit is likely to be the biggest thing you need to save up for, there are a few other things you'll need to pay for.
How much might a first-time buyer need to save?
The table below is to help you work out how much you'll need to save if you're a first-time buyer.
The exact amount will vary, for example your solicitor may charge more or less, you might not need a moving van and you might have more expensive taste in furniture. It also assumes that you're not paying for your mortgage adviser.
The Stamp Duty cost shown below is correct in November 2025 and applies only to first-time buyers. You can use the government's Stamp Duty calculator to work out how much you'll need to pay based on your individual circumstances.
| Estimated house price: | 5% deposit | Solicitor fees | Stamp duty (first-time buyer) | Moving costs | Furniture | TOTAL TO SAVE |
|---|---|---|---|---|---|---|
| £200,000 | £10,000 | £2,000 | £0 | £300 | £1,000 | £13,300 |
| £300,000 | £15,000 | £2,000 | £0 | £300 | £1,000 | £18,300 |
| £400,000 | £20,000 | £2,000 | £5,000 | £300 | £1,000 | £28,300 |
How to save for a house deposit
1. Work out how much you need to save
Use property search apps to work out roughly how much your new home will cost and how much deposit you’ll need to save. If you’re a first-time buyer, aim for at least 5% of the cost of the property. Property prices change over time, but you can only work with the information you have now, and you can always revise your targets later.
Remember to add in the extra costs, such as stamp duty, solicitor fees and the cost of moving house.
2. Find the shortcuts
Take a look at our life hacks for saving a house deposit, for example saving in a lifetime ISA could mean it takes you 25% less time to reach your target because of the generous government bonus.
Read about how our customer, Dan, got an extra £11,000 towards his first home using his OneFamily Lifetime ISA.
3. Do the maths
Then it’s worth looking at your budget.
How much money do you have coming in and how much do you pay out each month? After you’ve paid for your essentials, such as your rent and bills, how much money can you reasonably save each month?
Divide your target amount by your monthly savings goal to see how many months you need to save for.
4. Increase how much you can save
If this feels like too long, then it’s time to find a way to increase how much you have available to save each month. There’s two ways to do this: either increase how much is coming in or reduce how much is going out.
Find a side hustle or find something you don’t need to spend money on. Even better, do both. Whatever the difference is can go straight into your savings.
5. Get started
The sooner you start saving, the sooner you could be taking that key-dangling selfie! If you start this month then you’re already a month closer.
Open a OneFamily Lifetime ISA
Our Lifetime ISA comes with a 25% government bonus, worth up to £1,000 a year!
Our Lifetime ISA invests in stocks and shares, so the value is likely to go up and down over time. This is normal for this type on investment, but it means there is a risk you could get back less than you put in if you withdraw at a time when the value is lower.
