If you're dreaming of getting your own front door, one of the first questions you'll ask is: how much do I actually need to save? The answer isn't one-size-fits-all, and getting it wrong could cost you thousands. Let's cut through the confusion together.
The Minimum Deposit — And Why Bigger Usually Means Better
In the UK, the minimum deposit most lenders will accept is 5% of the property's value. So on a £250,000 home, that's £12,500. Sounds manageable, right? Well, here's the catch — the smaller your deposit, the higher your mortgage interest rate tends to be. Lenders see a smaller deposit as a bigger risk, so they charge more for it.
A 10% deposit (£25,000 on that same home) will typically unlock noticeably better rates. Jump to 15% or even 25% and the rates get better still. Over a 25-year mortgage, even a small difference in your interest rate can add up to tens of thousands of pounds. So while 5% gets you through the door, saving a little more — if you can — really does pay off. You can use TrueSaver to compare what rates you might be eligible for at different deposit levels, so you can see the difference in black and white before you commit.
Government Schemes That Can Help You Get There Faster
The good news is you don't always have to get there entirely on your own. There are government-backed schemes designed to help first-time buyers in the UK get onto the ladder with a smaller deposit or a bigger boost to their savings.
The Lifetime ISA (LISA) is one of the most powerful tools available. You can save up to £4,000 a year into a LISA and the government tops it up with a 25% bonus — that's up to £1,000 free money every year. Just make sure the property you're buying is under the £450,000 price cap and that you're buying with a mortgage, not cash.
There are also shared ownership schemes, where you buy a share of a property (typically between 25% and 75%) and pay rent on the rest. This means a smaller deposit is needed because you're only buying part of the home. It's not perfect for everyone, but for many first-time buyers it's a genuine stepping stone. Have a look at what's available in your area and compare your options at TrueSaver to see what might suit your situation best.
What Else Do You Need to Budget For Beyond the Deposit?
Here's something that catches a lot of first-time buyers off guard — the deposit isn't the only upfront cost. Before you hand over your keys, you'll likely need to budget for several other expenses too.
Stamp Duty Land Tax (SDLT) is one of the biggest. As a first-time buyer in England, you currently pay no Stamp Duty on the first £425,000 of a property's value — but check the latest rules as thresholds can change. In Scotland and Wales, different land taxes apply.
You'll also need to factor in solicitor or conveyancing fees (typically £1,000–£2,000), a surveyor's report (from around £300 upwards), and mortgage arrangement fees which some lenders charge. Add it all up and it's wise to set aside an extra 2–3% of the purchase price on top of your deposit just for these costs. Planning ahead means no nasty surprises when you're this close to the finish line.
Terry's Top Tips
- Aim for at least 10% if you can — it unlocks significantly better mortgage rates and saves you money over the long term.
- Open a Lifetime ISA as soon as possible — the government 25% bonus is free money, and time in the account matters for maximising it.
- Don't forget the extra costs — budget an additional 2–3% on top of your deposit for solicitors, surveys, and taxes.
- Check your credit score now — lenders look at this closely, and improving it before you apply could get you a better rate.
- Compare your mortgage options at TrueSaver — seeing rates side by side at different deposit levels helps you make a smarter, more informed decision.
Getting your deposit together takes time, but every pound you save brings you one step closer to that front door. Know your numbers, use the tools and schemes available to you, and don't be afraid to ask for help along the way — that's exactly what we're here for. Ready to find your best mortgage deal? Get a free quote from an FCA-authorised adviser at TrueSaver — no obligation, takes 2 minutes. Visit truesaver.co.uk/mortgage
