How Much Deposit Do You Really Need in 2026? 🏡💰
For many buyers, especially first-time buyers, the deposit is one of the biggest questions when starting the property journey.
The good news is that the answer may be more flexible than you think. ✅
What is a deposit?
A deposit is the amount of money you put towards the purchase price of a property yourself, while the rest is usually covered by a mortgage. The deposit is normally expressed as a percentage of the property’s value.
For example:
• 5% deposit on a £250,000 home = £12,500
• 10% deposit on a £250,000 home = £25,000
• 15% deposit on a £250,000 home = £37,500
Is 5% enough? 🤔
In some cases, yes. There are mortgage products available for buyers with a 5% deposit, which means you may be able to buy with less savings than you expected.
However, a lower deposit can sometimes mean:
• fewer mortgage choices
• higher monthly repayments
• a higher interest rate
• stricter affordability checks
So, while 5% can be enough, it is not always the most cost-effective option if you have the ability to save more.
Why a bigger deposit helps 📈
The more deposit you can put down, the lower the amount you need to borrow. This often improves your mortgage options and can reduce your monthly payments.
A larger deposit may help you:
• access better mortgage deals
• reduce your interest rate
• improve affordability
• make your offer more attractive to sellers
For many buyers, aiming for 10% is a sensible target, if possible, but this will depend on personal circumstances and timescales.
Do first-time buyers need more than the minimum?
Not necessarily, but it is important to think beyond just the mortgage deposit. Many first-time buyers focus on reaching the minimum percentage without allowing for the other upfront costs involved in buying.
In reality, you may need savings for:
• legal fees
• survey costs
• mortgage arrangement fees
• moving costs
• furnishings or immediate repairs
That is why having a small financial buffer can be just as important as the deposit itself. 💡
Can gifted deposits help? 🎁
Yes, in many cases buyers can use a gifted deposit from parents or family members, provided the lender is happy with the arrangement and the right documentation is supplied.
This can be particularly helpful for first-time buyers struggling to bridge the gap between income and house prices.
What should buyers in Gravesend consider? 📍
The amount you need will depend on the type of property you are buying and your overall financial position.
A buyer looking at flats or starter homes in Gravesend may have a different savings target to someone hoping to buy a larger family home in a nearby village.
Before beginning your search, it is a good idea to speak to a mortgage adviser so you understand:
• how much you may be able to borrow
• what size deposit is realistic
• what your monthly repayments could look like
• what other buying costs you need to budget for
Final thoughts
There is no one-size-fits-all answer when it comes to deposits in 2026. Some buyers may be able to proceed with 5%, while others may prefer to wait until they have 10% or more to secure a stronger mortgage deal.
We are here and ready to help in any way we can. 🧑💼
☎️ Call: 01474 321957
📧 Email: sales@mandmprop.co.uk