Buying your first home is a great milestone, but it can also make you anxious—especially when it comes to the deposit.
One of the most common questions first-time buyers ask is simple: how much deposit do I really need? The answer depends on several factors, and this is where first time buyer mortgage brokers can make a huge difference.
This guide breaks everything down in a clear, simple way so you know exactly what to expect.
What Is a Deposit?
A deposit means a sum of money you pay upfront when buying a home. The rest of the property price is covered by a mortgage from a lender.
For example, if a home costs £200,000 and you put down a £20,000 deposit, you’ll need a £180,000 mortgage.
The size of your deposit affects:
- Whether you get approved
- Which lenders can you use
- Your interest rate
- Your monthly payments
Minimum Deposit for First-Time Buyers
In most cases, first-time buyers need at least 5% of the property price as a deposit. This means:
- £150,000 home → £7,500 deposit
- £200,000 home → £10,000 deposit
- £250,000 home → £12,500 deposit
Some lenders may ask for 10% or more, especially if your income is irregular or your credit history is limited.
This is where first time buyer mortgage brokers are valuable—they know which lenders are flexible and which ones suit your situation best.
Why a Bigger Deposit Helps
While 5% is often the minimum, a larger deposit can unlock better options.
Benefits of a Bigger Deposit
- Lower interest rates
- Smaller monthly repayments
- More lender choices
- Better chance of approval
Let’s take that up with an example. Someone with a deposit capacity of 10–15% can find much cheaper mortgage deals than those with only 5%.
Government Schemes That Can Help
First-time buyers may be able to use government-backed schemes to reduce how much they need upfront. Availability depends on your country and current rules, but common options include:
- Shared ownership
- First-time buyer equity schemes
- Family-assisted mortgages
- Deposit boost or guarantor mortgages
A major advantage of using first time buyer mortgage brokers is that they understand these schemes fully and can tell you which ones you actually qualify for.
Can I Buy With No Deposit?
In rare cases, yes—but it’s not common.
Some lenders offer 100% mortgages with a guarantor, usually a parent or close family member. Lenders can resort to guarantor’s savings or property as security instead of cash.
It’s important to note that these deals have their own set of risks and guidelines. A mortgage broker can go in detail and explain whether this is realistic or safe for you.
Extra Costs First-Time Buyers Often Forget
Your deposit is not the only money you need. Many buyers get caught off guard by extra costs, such as:
- Solicitor or legal fees
- Mortgage arrangement fees
- Valuation and survey costs
- Moving expenses
- Stamp duty (if applicable)
First time buyer mortgage brokers often help buyers plan for these costs so there are no last-minute surprises.
How Mortgage Brokers Help First-Time Buyers
A first-time buyer mortgage broker does more than find a loan. They guide you through the entire process, step by step.
They can:
- Calculate the deposit you truly need
- Find lenders that accept low deposits
- Explain confusing mortgage terms in plain language
- Check your credit profile before applying
- Help you avoid rejected applications
Most importantly, they tailor advice to you, not just what looks good on paper.
How Long Does It Take to Save a Deposit?
This depends on your income, expenses, and savings habits. Some buyers save for years, while others use help from family or bonuses to reach their goal faster.
A broker can help you:
- Set a realistic savings target
- Decide between 5%, 10%, or higher deposits
- Know when you’re “mortgage-ready”
This planning often saves time and money in the long run.
Final Thoughts
Most first-time buyers need between 5% and 10% of the property price as a deposit. While it’s possible to buy with less, having more saved gives you better options and lower costs.
Working with experienced first-time buyer mortgage brokers can make the journey far less stressful. They help you understand how much you need, where you stand, and how to move forward with confidence.
Buying your first home is a big step—but with the right guidance, it’s one you can take with clarity and peace of mind.
