How much deposit will I need?

Answered on 2 July 2018 by Nick Morrey

If I wanted to buy a house for the value of £110,000, how much deposit will I need?

Realistically the minimum deposit you will need is 10% of the purchase price, £11,000. This will give you access to a small choice of lenders and a range of fixed or variable rate mortgage products.

There are an even smaller number of building societies who are willing to offer mortgages of between 95% and 100%, but only if your parents are willing to put their own property up as security for the mortgage in addition to the property you are buying.

Parental Guarantee

With all of these "parental guarantee" schemes the lenders expect you to be able to support the mortgage payments on your own and they should not be confused with a guarantor mortgage where a close relative guarantees the mortgage payments until such time as you earn enough to support the mortgage on your own.

The government also has various Home buy schemes where only a 5% deposit is required and full details of these can be found on the Gov website:

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and they will then be able to help you.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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