This blog is for general information only and does not constitute individual advice. Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Miller homes cannot advise you on a mortgage, please consult an independent mortgage adviser for any personalised illustrations

Buying a new home is an exciting milestone, but figuring out how much deposit you need can feel overwhelming. In this guide, we’ll break down everything you need to know about deposits, from minimum requirements to government schemes, and even practical tips for saving.

The minimum deposit you need

Mortgage lenders require a deposit of at least 5% (or higher) of the property price. 5% is the lowest deposit typically accepted, but this isn’t offered by all lenders and not everybody will be eligible.

More often than not, lenders will require a minimum of 10% of the property value or higher for a mortgage deposit.

While a 5% deposit is enough for some to get on the property ladder, many buyers aim to save more—typically 10% to 20% of the property price. A larger deposit reduces the amount you need to borrow, improving your chances of being approved for a mortgage and often securing better interest rates.

Keep in mind that lenders may have stricter requirements depending on your financial circumstances, such as your credit score or employment status. It’s worth speaking with a mortgage advisor early in your home-buying journey to understand what’s realistic for you.

You can also use our mortgage calculator to learn more about what you might be able to afford.

Example:

For a £300,000 home, a 5% deposit would mean saving £15,000. A 10% deposit would be £30,000, and a 20% deposit would be £60,000.

While 5% deposits are common, mortgages with smaller deposits often come with higher interest rates, so it’s worth considering if a larger deposit could save you money long-term.

Specialist mortgages

Not everyone’s financial situation fits into the standard deposit model. Here are some other mortgage types which may change how much deposit is needed:

• Guarantor mortgages: These can allow for a 0% deposit if a family member or guarantor secures the loan. This option can help first-time buyers with limited savings.
• Buy-to-let mortgages: If you’re buying a property to rent out, expect to pay a much larger deposit, typically between 20-25% of the property value.
• For borrowers with poor credit: If your credit history isn’t strong, lenders may require a higher deposit to offset their risk.

How much should you put down as a deposit?

The minimum deposit is just that - a minimum. But if you can save more, you should.

The median deposit for first time buyers in the UK in March 2025 was 14.65%.So, you can see that people typically aim to put more down than the 5% or 10% minimum required. But why is saving up for a bigger deposit better?

What are the benefits of having a bigger deposit?

Better mortgage rates

Lenders often reward larger deposits with lower interest rates. This can significantly reduce the overall cost of your mortgage, saving you thousands over its term.

Lower monthly repayments

With a larger deposit, you’ll need to borrow less. This results in smaller monthly repayments, giving you more breathing room in your budget.

Increased loan approval chances

Lenders see buyers with larger deposits as lower risk. This can improve your chances of being approved for a mortgage, especially if your credit score isn’t perfect.

More property options

A higher deposit can give you access to a wider range of properties, so the chances of finding your dream home are better.

Protection against market changes

Owning a bigger share of your home from the start reduces the risk of falling into negative equity if property values decrease. This added security can be especially important in fluctuating markets.

Government schemes that can help

If saving for a deposit feels out of reach, you’re not alone. Thankfully, there are government-backed schemes designed to help.

• First Homes Scheme: The first homes scheme is a Government initiative which can make home ownership more accessible to first-time buyers and key workers in England. If you’re a first-time buyer in England, you could buy a brand-new home with a minimum 30% discount against the market value.
• Shared ownership: With this scheme, you purchase a share of the property (e.g., 25%-75%), so your deposit is based only on the share’s value - often much lower than 5% of the property’s total price.

How your deposit affects your mortgage

The size of your deposit plays a big role in determining the terms of your mortgage:

• Lower LTV Ratio: A larger deposit means you borrow less relative to the property’s value.
• Better Interest Rates: Lenders reward lower LTVs with reduced rates.
• Cheaper Monthly Payments: Borrowing less reduces your monthly financial outgoings.
• Long-Term Savings: Smaller interest rates and repayments add up to significant savings over time.

How to save for a deposit

Saving for a deposit requires planning and in some cases discipline. Here are some practical tips to help you reach your goal faster:

1. Give yourself a monthly budget: Identify essential and non-essential monthly expenses to see where you can save.
2. Set up a savings account: A dedicated savings account, preferably one with a competitive interest rate, can help keep your deposit money separate. If it’s tucked away in a different account you are less likely to spend it!
3. Cut back on non-essential expenses: Small sacrifices, like reducing takeaways or subscriptions, can add up.
4. Seek support: Family gifts or equity release can provide a helpful boost. 

Hidden costs to consider alongside your deposit

Your deposit isn’t the only upfront cost you’ll face when buying a new build home. Be sure to factor in these additional expenses to avoid any unwanted surprises:

• Stamp duty: A property tax based on the purchase price, though exemptions may apply for first-time buyers. Use our stamp duty calculator to learn more.
• Solicitor’s fees: Legal support during the buying process comes with a price tag.
• Survey and valuation fees: Your lender may require a survey or valuation of the property.
• Moving costs: Don’t forget the costs of removals, packaging, and setting up utilities.

By understanding your deposit options and planning ahead, you’ll be well-prepared to make your dream home a reality. Whether you’re saving for the minimum or aiming for a larger amount, taking the time to plan your finances now can save you money and stress in the future.

How we can help

Deposit Match

Looking to stretch your deposit savings further? With our Deposit Match Scheme, we’ll match your deposit up to 5% of the property value, doubling your savings and reducing your mortgage amount.

Deposit Unlock

The Deposit Unlock Scheme enables you to secure your new home with a deposit as low as 5%, even if you’re not a first-time buyer. This scheme is exclusive to selected new build homes and offers competitive mortgage rates, making homeownership more accessible.

Family Deposit Scheme

Our Family Deposit Scheme allows family members to contribute towards your deposit. This could mean a smaller mortgage and more manageable monthly repayments, making it easier to move into your dream home sooner.

If you are still unsure about deposits, get in touch with our expert team who will be happy to help. Ready to find your dream home? Have a look at our developments near you.