What is a deposit?
Your deposit is the chunk of money you put into the purchase yourself. The mortgage covers the rest. So if a property costs £250,000 and you have a £25,000 deposit, you would usually need a mortgage for the remaining £225,000.
Why the deposit matters
A bigger deposit can improve your options. It may give you access to better mortgage deals and lower monthly payments.
A smaller deposit can still get you on the ladder, but your monthly costs may be higher and your lender choices may be more limited.
5% deposit
Lowest cash upfront, but often fewer deals and higher monthly costs.
10% deposit
A common target for first-time buyers and usually gives you more choice.
15%+ deposit
Stronger position, better rates in many cases, and lower borrowing.
The bit buyers often miss
Your deposit is not the only cash you need. You may also need money for legal fees, surveys, moving costs, furniture, and a buffer after you move in. That is why buyers can hit their deposit target but still not feel fully ready.
A simple way to think about it
Deposit = getting through the front door.
Total cash plan = being able to afford everything around the move too.
What to do next
Once you know roughly what deposit level you are aiming for, the next step is to work out the numbers properly.
Use the calculator to estimate your target, then use the checklist to make sure the rest of your buyer plan is in place.