How Much Deposit Do You Need for a House in the UK?
What 5%, 10% and 20% deposits mean for your rate, your monthly payment and the total cost of borrowing.
By Easy Finance Tips Editorial Team•
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Updated 2 Jul 2024•
6 min read•
15,877 views
Deposit size sets your LTV band
Lenders price in bands, commonly 95%, 90%, 85%, 80% and 75% LTV. Crossing into a lower band can cut your rate noticeably, so a small extra saving can be worth delaying for.
Do not spend the whole deposit
Keep money back for fees, moving costs and the first few months in the property. Buying with nothing left over creates avoidable pressure.
Run different deposit levels through the mortgage calculator to see the effect on monthly payments and total interest.
Sources
Easy Finance Tips provides general information and educational content, not personalised financial advice.
