Most lenders will lend up to 95% of a home’s value to a first-time buyer, so the minimum deposit on a £250,000 home is £12,500; a 10% deposit is £25,000 and brings a materially lower interest rate. On top of the deposit come legal fees, surveys and moving costs of £2,000 to £4,000, and stamp duty, which first-time buyers in England and Northern Ireland pay only on the part of the price above £300,000 for homes up to £500,000. A Lifetime ISA adds 25% to savings for a first home, up to £1,000 a year. Saving £500 a month reaches a £30,000 deposit in under four years; through a Lifetime ISA the government pays a fifth of it.
Deposit by price and loan-to-value
| Home price | 5% deposit, 95% mortgage | 10% deposit, 90% mortgage | 15% deposit, 85% mortgage | 20% deposit, 80% mortgage |
|---|---|---|---|---|
| £250,000 | £12,500 | £25,000 | £37,500 | £50,000 |
| £300,000 | £15,000 | £30,000 | £45,000 | £60,000 |
| £350,000 | £17,500 | £35,000 | £52,500 | £70,000 |
| £400,000 | £20,000 | £40,000 | £60,000 | £80,000 |
Lenders price by loan-to-value band, and the steps at 90%, 85%, 80% and 75% each bring a lower rate; the gap between a 95% and a 90% deal is usually the largest, often half a percentage point or more, which on a £225,000 loan is worth around £60 a month. A larger deposit also passes the affordability test more easily, since the loan is smaller for the same income. The deposit calculator shows the deposit and loan for any price and loan-to-value, and the loan-to-value calculator works backwards from the deposit you have.
How long it takes to save
| Saving £500 a month towards £30,000, starting with £5,000 | Time | Of which government bonus |
|---|---|---|
| Ordinary savings account at 4% | 45 months | £0 |
| Lifetime ISA at £333 a month, no starting balance | 73 months | £6,077 |
| Same £333 a month without the bonus | 91 months | £0 |
A Lifetime ISA takes up to £4,000 a year, adds a 25% bonus on each payment and can be used for a first home costing up to £450,000 once the account has been open twelve months. The bonus cuts the time to a £30,000 deposit by a year and a half at £333 a month, and a couple buying together can each hold one. Withdrawing for any other purpose before 60 costs 25% of the amount taken, which more than cancels the bonus. The Lifetime ISA calculator plans the monthly amount and shows the bonus, and our ISA allowance guide covers how the £4,000 fits inside the £20,000 limit.
Stamp duty for first-time buyers
| Price | Stamp duty as a first-time buyer | As a home mover | Saving |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £2,500 |
| £300,000 | £0 | £5,000 | £5,000 |
| £350,000 | £2,500 | £7,500 | £5,000 |
| £425,000 | £6,250 | £11,250 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
| £550,000 | £17,500 | £17,500 | £0 |
In England and Northern Ireland first-time buyers pay nothing on the first £300,000 and 5% on the portion between £300,000 and £500,000; above £500,000 the relief disappears entirely and ordinary rates apply to the whole price. Both buyers must be first-time buyers for a joint purchase to qualify. Scotland and Wales have their own taxes with different first-time buyer treatment. Our stamp duty guide covers all three nations and the stamp duty calculator gives the figure for any price and buyer type.
The other costs
Conveyancing typically costs £1,000 to £2,000 including searches, a survey £300 to £800 depending on the level, mortgage arrangement fees up to £999 or £1,499 where a fee-paying deal is chosen, removals a few hundred pounds, and buildings insurance must be in place from exchange. Lenders also expect the deposit to be in cleared funds with a paper trail, and a gift from family needs a signed letter confirming it is not a loan. The moving cost calculator totals the extras for a given purchase, and the mortgage affordability calculator shows the loan your income supports; our mortgage repayment guide gives the monthly cost at each rate.
Smaller deposits and shared ownership
Where a 5% deposit is out of reach, shared ownership lets a buyer purchase a share of 25% to 75% of a home, usually with a 5% to 10% deposit on that share only, paying rent on the rest and buying further shares later. A 40% share of a £300,000 home needs a deposit of £6,000 to £12,000 rather than £15,000 to £30,000, at the cost of rent and service charges on top of the mortgage. The shared ownership calculator sets the mortgage, rent and service charge against renting or buying outright. Guarantor and family-assisted mortgages are the other routes, using a relative’s savings or property as security in place of a deposit.
Common questions
What is the minimum deposit for a first-time buyer? 5% of the price with a 95% mortgage: £12,500 on a £250,000 home. A 10% deposit brings a noticeably lower rate and a wider choice of lenders.
How much deposit do I need for a £300,000 house? £15,000 at 5%, £30,000 at 10%, £45,000 at 15% or £60,000 at 20%, plus roughly £2,000 to £4,000 of fees and, for a first-time buyer in England, no stamp duty.
Do first-time buyers pay stamp duty? Not on homes up to £300,000 in England and Northern Ireland. Between £300,000 and £500,000 the rate is 5% on the excess, and above £500,000 the relief is lost entirely.
Is a Lifetime ISA worth it for a deposit? Yes for a first home costing up to £450,000: a 25% bonus on up to £4,000 a year is £1,000 of free money annually, provided the account is opened at least twelve months before purchase.
Can my parents give me the deposit? Yes. Lenders accept gifted deposits with a signed letter confirming the money is a gift and where it came from. Gifts may fall within inheritance tax rules if the giver dies within seven years.
How long does it take to save a deposit? About 45 months for £30,000 at £500 a month with £5,000 to start and 4% interest. A Lifetime ISA at £333 a month reaches the same figure in 73 months, with £6,077 of it paid by the government.
Information, not financial advice. Deposit, savings and stamp duty figures are from the site’s calculators for 2026/27; mortgage availability and rates depend on the lender and your circumstances. Speak to a mortgage adviser before committing to a purchase.